
Glass. 
Book. 



62d Congress > SENATE \ D 2P D1 SS5 r 

2d Session \ ( -No. o79 



POSTAL EXPRESS 

AS A SOLUTION OF THE PARCELS 



POST AND HIGH COST OF 
LIVING PROBLEMS 



3&0 



AN ADEQUATE EXPRESS SERVICE 



RELIEF TO CONSUMERS AND SHIPPERS BY A REDUC- 
TION OF CHARGES AND EXTENSION OF SERV- 
ICE TO THE COUNTRY THROUGH 
RURAL DELIVERY 



A STUDY IN THE ECONOMICS OF THE TRANSPORT OF SMALL SHIPMENTS 

BY 

HON. DAVID J. LEWIS 

MEMBER OF CONGRESS 



PRESENTED BY MR. GARDNER 
March 5, 1912. — Ordered to be printed 



WASHINGTON 
1912 



' 7 , ^ :a T(^ 







A 



/> 



POSTAL EXPRESS AS A SOLUTION OF THE PARCELS POST AND 
HIGH COST OF LIVING PROBLEMS. 



TESTIMONY OF HON. DAVID J. LEWIS. 

The Chairman. It will be necessary that you first be sworn, Mr. 
Lewis. 

(Hon. David J. Lewis was thereupon duly sworn by the chairman.) 

The Chairman. You are a Member of the House of Represent- 
atives, are you not, Mr. Lewis ? 

Mr. Lewis. Yes. 

The Chairman. Eepresenting the sixth district of Maryland? 

Mr. Lewis. Yes, sir. Gentlemen of the committee, the country owes 
you its emphatic approval for giving your already overburdened time 
and energies to the subject of packet and express transportation. 
It is probably exactly correct to say that the subject has never 
received in this country a thorough canvass; and I regard the cir- 
cumstances of the investigation before this body as especially pro- 
pitious. I say this because when this committee announces the 
conclusions it may reach it will speak with the voice of authority. 
It should, therefore, consider the subject, and it should speak. 

It may facilitate the presentation of my matter if I indicate in a 
topical way the features of the subject I mean to discuss. There 
are two main divisions, the passenger-express business and a system 
of fast-freight express. The first division comprises the following 
features : 

The problem: The high cost of living in Important elements of an adequate 

the vital necessaries. system: 

Relief: Transportation direct from Collect and delivery, cost, 

farm to consumer. Express contracts in re railway pay. 

The railways, and the retail shipment: Purchasing the contracts, etc. 

Transportation accounting, effect on. Public-service motive. 

The express companies, and the small Elastic rates and proficient rate 

shipment: makers. 

Transportation accounting, effect on. Maleconomy of present express: 

Elimination of transportation accounting. Savings under postal unification and 

Express rate-making in the United States. management. 

Prohibitive express charges: Comparative costs of operation. 

Resulting paucity of traffic. The rate declension in the express traffic: 

Development of traffic by normal Square-root formula for lengthening 

rates. hauls. 

Compelling railways to perform express Average express rates : 

functions. Feasible express rates under postal 

Regulation of express company rates. unification. 

Inadequate parcel-post schemes. Express-railway pay, the amount: 

Parcel post. Method of postal express railway pay. 

General remarks. Miscellaneous remarks. 



4 



POSTAL EXPRESS. 



THE PROBLEM. 

This subject, I may say, arises out of the very serious condition in 
which the country is placed with regard to the high cost of living, a 
condition becoming daily more aggravated. It has been declared, 
with how great degree of accuracy I do not know, that the farmers 
who raise our vital necessaries get about $6,000,(700,000 for what 
finally sells to the consumers at about $13,000,000,000. 

Last year's agricultural products were worth $9,000,000,000 to the farmers. The 
Government used farm values in getting figures for this total . Assuming that the farm- 
ers kept one-third of the products for their own use, the consumers paid more than 
$13,000,000,000 for what the producers received $6,000,000,000. The cost of getting 
the year's products from producers to consumers amounted to the enormous sum of 
$7,000,000,000. The real problem to deal with is not high cost of living. It is high 
cost of selling. — B. F. Yoakum, chairman St. Louis & San Francisco R. R. 

The report of the Secretary of Agriculture for 1910 gives the 
following as the percentages of the prices paid by the consumer 
which the farmer received for the foodstuffs named: 



Per cent. 

Poultry 55.1 

Eggs, by the dozen 69. 

Celery, by the bunch 60. 

Strawberries, by quart 48. 9 

Oranges, by dozen 20. 3 

Melons, by pound 50. 

Potatoes, by bushel 59. 3 

Watermelons, singly 33. 5 



Per cent. 
4 
1 

6 




Turkeys 63. 

Cabbage, by the head 48. 

Apples, by bushel 55. 

Apples, by barrel 66. 

Onions, by peck 27. 

Green peas, by quart 60. 

Parsnips, by bunch 60. 

Turnips, by bunch 60. 



TRANSPORTATION DIRECT FROM FARM TO CONSUMER. 

I believe it is generally admitted that the problem before the 
country is how to get these vital necessaries direct from the producer 
to the consumer at something like the price at which they are pro- 
duced. 

The instrumentality which will do this between farmer and con- 
sumer will eliminate the necessity for a parcel post. A study of these 
questions develops the fact that a method of relief requires the coin- 
cidence of two conditions: 

(a) A transportation condition permitting the economical movement, direct from 
the rural producer to the consumer, of 

(b) articles in quantities to suit the consumer's needs, i. e., retail, not wholesale, 
quantities. 

Condition (a) will be referred to in this study variously as "direct," 
"articulated," "unified," or "coordinated" transportation, and con- 
dition (6) as the small shipment or "retail shipment." 

The direct transportation in mind is a linking up of the rural 
delivery structure with the urban delivery plants of the express com- 

Eanies, and of both with the railways. The "retail shipment" mostly, 
ut not entirely, illustrated in the vital necessaries, describes those 
articles which are originally produced in sufficiently small sizes or 
forms to be suited to the consumer's wants. Since the exorbitant 
cost of living and the parcel post both relate to this kind of shipment, 
the whole subject may be aptly denominated "the express-service" 
problem, as it involves: 

The expeditious movement of the — 

Small or retail shipment by an — 

Articulation of the rural delivery, express delivery, and the railways, 



POSTAL EXPBESS. 5 

Nearly all the vital necessaries begin in retail quantities on the 
farm, but at present go to (a) the selling agent, who converts them 
into wholesale quantities for (b) the wholesale market, which passes 
them on in wholesale units to (c) the retail market, which reconverts 
them into retail quantities and passes them to id) the consumer, the 
fourth buyer, at a price which about doubles that paid by the first 
buyer to the grower. 

Can the fourth buyer, the consumer, now become the first buyer ? 
Yes. When the farmer brings his supplies to town and sells direct 
from the street. But this method of distribution entails such wastes 
of effort and transportation and maleconomy for the farmer that the 
price to the consumer is little, if any, better than the cumulative 
commercial one. At the same time the mere cost of transportation, 
if it were direct, like that of the letter from the sender to the 
addressee, would be inconsiderable. 

The difficulty now lies in the absence of a connected transporta- 
tion conduit, which will receive the small shipment at the farm, 
and convey it, like a letter, direct to the consumer. And as a 
result when the article leaves the farm, its ultimate consumer being 
unknown, it goes into commerce, instead of to him; is converted into 
wholesale or commercial forms, only at last to reach the consumer 
as the third or fourth buyer, at double cost. The additional price 
is the payment, not necessarily too large, which the consumer must 
pay to commerce for its troublesome and costly processes. If our 
manufacturers had to secure their coal as fourth instead of first 
buyers, the accumulated price would bring many of their indus- 
tries to a stop. But, thank Providence, they can buy direct. Why ? 
Because they buy in wholesale quantities, according to their needs, 
direct from the mine and have the railway conduit to bring it direct 
to the factory. If the consumer had a like conduit, direct from the 
farm to the kitchen, he could phone or write the farmer direct, and 
have the articles sent him direct at their -first price, and fresher in 
the bargain. The first order would grow into a standing order, 
where the articles, their prices and payment proved satisfactory, 
and permanent supply relations would develop, with the consumer 
having his regular farmer or trucker as he now has his doctor, and 
with the wastes of commerce (the high cost of living) largely re- 
moved. 

Why should not the retail purchaser have the same privilege of 
buying from the retail producer which the manufacturer has to buy 
from the wholesale producer ? He has, and would, but he lacks the 
transportation facilities to bring him his retail purchase. Do the 
facilities exist? Yes; they are all here, and he is paying now for 
their maintenance and service. They are the — 

Rural delivery, which reaches the farm. 

The express delivery, which reaches the city kitchen. 

The railway necessary between both. 

Why do they not serve him ? Because they are disconnected and 
are not linked together. How may they be connected? It is the 
object of this study to answer this question in detail. 

It must be obvious that if they are coupled up so as to move the 
retail shipment a solution of the parcel-post problem will be obtained; 
and on terms, too, that will remove the objections of the local mer- 
chant. We need not fear him if we give him a just express rate and 



6 POSTAL EXPRESS. 

improved express service, that will, moreover, reach him in the 
country. We shall need to fear him on any parcels scheme proposed. 

THE RAILWAYS AND THE RETAIL SHIPMENT. 

When we think of transportation, naturally we turn first to the 
railways of the country. I call attention to this circumstance in that 
connection. The railways are doing now, have always done, a whole- 
sale business, as distinguished from a retail business. The ultimate 
unit of purchase, the consumer, rarely goes to a freight depot for his 
supplies. The railway minimum unit of shipment is a hundred pounds 
and its minimum charge is 25 cents. But the consumer rarely requires 
a hundred pounds of anything, certainly not of meat, butter, eggs, or 
the other vital necessaries we use on our table. So the railway can not 
handle the shipment in sizes small enough for him, and thus the ship- 
ment takes its way from the producer, not to the consumer, but by 
reason of its wholesale size it goes into the commerce of the country. 

It may seem that the railways are acting arbitrarily in thus drawing 
the line on a hundred-pound shipment and the 25-cent charge. Let 
me say that when you come to investigate railway practices you will 
find that the hundred-pound minimum and the 25-cent fee are 
reasonable enough, from their standpoint. When you consider the 
acts of attention which a railway must give a shipment, be it large 
or small, be the journey short or long, you will find there are 20, which 
all must bear alike. I insert a list of them compiled by a railway 
traffic expert: 

The railway company employee — 

(1) Unloads articles from consignor's vehicle. 

(2) Loads article in car. 

(3) Ascertains rate to be paid. 

(4) Makes out bill of lading. 

(5) Makes out waybill and sends copy to auditor and the train conductor. 

(6) Receiving agent, destination, receipts to conductor — 

(7) Sends notice to consignee. 

(8) Unloads package from car. 

(9) Takes receipt of consignee. 

(10) Loads it on consignee's wagon. 
(11) Agent gets money for shipment — 

(12) Copies bill of lading into record of freight forwarded. 

(13) Copies bill of lading into record of freight received. 

(14) Sends statement of freight "sent" to auditor. 

(15) Sends statement of freight "received" to auditor. 
(16) Auditor checks bill of lading against records of sending agent — 

(17) Checks bill of lading against record of receiving agent. 

(18) Advises treasurer of money due by each agent. 

(19) Makes statistical report from bill of lading. . 

(20) Calculates, per bill of lading, amount payable the different railways. 

Of those 20 acts of " transportation attention," 15 are at this mo- 
ment replaced by the postage stamp in the carriage of the shipment 
by the postal system. On the large shipment their hindrance is not 
so great, and it can move; but their effect on the small shipment is 
simply to penalize it out of the transportation of the country. 

Here are 20 acts of service which the railway (and mutatis mut- 
andis the express company) must perform for the shipment whether 
the weight or journey be great or small. Their total cost constitute 
nearly the whole expense when the journey is the shortest or the 
weight is the lightest, while this expense tends to lessen corre- 
spondingly with the increase of the weight and the journey. 



POSTAL EXPRESS. 7 

Railway tariffs frequently show rates per 100 pounds of 8, 7, and 
6 cents for short distances; and we shall see later that the average 
rate, sixth class, for 36 miles is but 9 cents, and for 100 miles but 
11 cents ; in fact, nearly all minimum distance rates for all the classes 
are below 20 cents per 100 pounds. Yet the railways decline to carry 
for this published tariff, and require, instead, a minimum fee of 25 
cents, however low the rate may be, even when 6 cents a hundred; 
and in the same way they refuse to charge the shipper on less than 
100-pound lots, however much less the actual weight may be. This 
fee of 25 cents may be said to be the irreducible minimum in freight 
charges, however light the weight. 

Speaking relatively, railway accounting practices are fitted pri- 
marily for the large and not the little consignment, for the large 
buyer rather than the little and ultimate buyer. Their desirable busi- 
ness comes from the wholesale unit rather than the final unit of trade 
or the ultimate purchaser. Accordingly, the transportation practices 
and processes through which every shipment goes, before going in the 
car, while in transit, after leaving the car, and before its receipt by 
the consignee, are the relatively necessary incidents of the large ship- 
ments, the cost of which it can reasonably bear. But when they are 
applied to the small shipment or the retail unit, under 100 pounds, 
their cost has driven it out of transportation commerce. 

THE EXPRESS COMPANY AND THE SMALL SHIPMENT. 

When we think of the ' 'small" shipment we think of the express 
company. It ought to carry this shipment, at least between the 
railway towns and cities, and meet such needs as the parcel post. 
It does not and for two reasons, neither of which it can remedy. 
First, it does not reach the farm or country store, either to receive or 
deliver the shipment; second, it does not carry it on sufficiently 
economical terms. It is burdened down with the same condition of 
"transportation accounting" that prevails with the railways. I 
insert a list of express acts, 11 in number, which are replaced by the 
postage stamp in the postal carriage of the shipment: 

The express company — 

(1) Ascertains the rate to be paid. 

(2) Makes out waybill. 

(3) Copies waybill into record of shipment "forwarded." 

(4) Copies same into record of shipments "received." 

(5) Makes statement of "shipment sent" to auditor. 

(6) Makes same of shipments "received." 

(7) Auditor checks waybills against record of "sending" agent. 

(8) Auditor checks same against record of "receiving" agent. 

(9) In case of "through" waybills previous items repeated. 

(10) Auditor makes division of percentages going to express company and the 

railway or railways. 

(11) In case of ' ' through " way bills auditor makes like division of percentages be- 

tween express companies and railways. 

The above acts, alone, account for an immense proportion of the 
expenses of the express companies, and are fatal to the making of a 
rate proportioned to the small shipment. 

No railway or express company has so far ventured an experiment 
of elimination of these accounting practices, 1 and in view of the inter- 

1 It may be that this statement is too broad. The Pennsylvania Railroad is said to do 
a 5 or 10 cent package business out of Philadelphia to certain points, without collect or 
delivery, as to which this accounting may not obtain. 



8 POSTAL EXPRESS. 

corporate dealings of express and railway companies it is difficult to 
see how such an experiment could succeed. It is, perhaps, not too 
broad a statement to say that railway and express transportation ac- 
counting are necessary to intercorporate dealings and the large ship- 
ment, and can not be dispensed with by either. As long as the indi- 
vidual railway and express company are our agencies of transporta- 
tion for the small shipments, we can not complain at paying for the 
practices they find necessary, and we shall see that neither are insti- 
tutionally qualified to economically handle the small shipment. 

ELIMINATION OF TRANSPORTATION ACCOUNTING. 

There is one transportation agency in the United States which is 
able to divorce the package from the accounting burden. It is the 
postal system. It is doing so now. The postage stamp takes the 
place of the 11 processes of the express company, set forth in a pre- 
ceding page. If we except the stamp account of the local postmaster 
with the department, absolutely none of the express accounting de- 
scribed takes place. It is the only transportation institution which 
has accomplished this distinction. And this statement is not made 
with the purpose of invidious comparison with other transportation 
agencies. The condition results from its universality and consequent 
simplicity of relation with other transportation agencies. If it were 
not for this, if it had to keep up the same accounting relations with 
its letters that the express and railway companies find necessary with 
their shipments, the letter would cost us 6 cents, and, perhaps, consid- 
ering the consequent diminution of the traffic, even 10 cents, instead 
of 2 cents. 

One might seem a little extravagant in this claim were it not an 
existing fact in postal administration ; it may be urged that some of 
these items are necessary safeguards against the loss of the shipment 
by theft. At present the postal system finds it more economical to 
locate and punish actual thieves than to keep watch over all its em- 
ployees in a probably vain enterprise of preventing the occasional 
miscreant. For those articles of traffic especially susceptible to this 
danger, such as money and other valuables, adequate protective proc- 
esses and insurance indemnification should be provided, to be speci- 
ally paid for, as in China a receipt from the consignee is required 
to be. If experience should prove such items to be necessary, it 
would seem they might be provided through the mechanical quintu- 
plication of the identification tag, copies going to the sender, the 
consignee, and to the trainmen handling the packages. 

We have thus an agency which reduces the twenty acts of railway 
service to five. In its stamp or identification-tag account with the re- 
spective postmasters, the department providing distinct tags for the 
different weights and distances, satisfactory statistics of the traffic 
nationally and locally could be inexpensively secured, supplying 
a serious deficiency in the present express business. 

Of the 51 cents that the average express package now costs, 52.50 
per cent or 27 cents goes to the express compan}^. Out of the 27 cents 
Jess than 6 cents is expended in the service of collect and delivery. 
Excepting the messenger and some superintending service, substan- 
tially all the remainder of the express revenue goes to this account- 
ing and to profits. Since the express business is mainly in the small 



POSTAL EXPRESS. 9 

packages, need we wonder that its rates and practices have reduced 
the traffic to about one-half of its proportions elsewhere, and prob- 
ably to one-third of what the elimination of the express company 
may develop it here? 

Thus both the railway, with reference to the fast-freight service 
later proposed, and the express service would be relieved of these 
acts, and the whole operation relieved of transportation accounting, 
leaving only the necessary acts of transportation. The rate ascer- 
taining, so onerous with eight hundred billions of railway rates to 
approach and two hundred and twenty billions of place to place 
express rates — one being the right and all the others the wrong 
rate — in itself lifts a substantial burden from the back of the article. 
At present when the shipment passes from one railway to another 
under railway practice the items are repeated again, and for longer 
journeys the series may be as often repeated as there are different 
railway companies. The accounting of the Pennsylvania Railroad 
Co. is carried into 100 subsidiary companies of which it is composed, 
each company preserving, for accounting purposes only, its corporate 
autonomy. The effect of all this is to penalize the shipment of less 
than 100 pounds and drive it out of the freight traffic of the United 
States. 

Obviously to save the small shipment it must be emancipated from 
" transportation accounting." 

This transportation accounting explains much of the necessity for 
the abnormality of the American express charge, but it is not the 
charge itself, and we will next investigate the methods employed in 
formulating the express charge. 

EXPRESS-RATE MAKING IN THE UNITED STATES. 

The contracts of the express companies with the railways pro- 
vide for paying the railways by means of a flat percentage of each 
charge the express company collects from the shippers. In 1909 the 
railway percentage was shown to be 47.53 of the average rate. With 
the exception that the contract requires that the express rate shall | 
not be less than 150 per cent of the freight rate on the like com- 
modity, the railway has nothing to do with the formal processes of 
express-rate making. Since, however, each package must account 
with the railway for its percentage, each package rate must be 
loaded for railway compensation according to the percentage pro- 
vided in the contract. In making an express rate the express-rate 
maker has to keep in mind the fact that 47.50 per cent of the rate 
he may make goes to the railway and 52.50 per cent to the express 
company. However different the proportion may be according to 
service standards, the contractual percentages remain obdurate, and 
the express-rate maker, unlike his brother in freight-rate making, 
must observe the procrustean conditions of his contractual bed. He 
must so make his rate that in no instance will the express percentage 
offend against the mandatory law of express cost on a short journey 
and light packages, and here an illustration may be given: 

The average rate of the express companies for a 5-pound package 
moving 36 miles is 27 cents. In making the rate, the rate maker 
first considered the cost of the express company service. He found 
it, let us say, to be 5 cenj;s for delivery, 6 cents for general expense, 



10 POSTAL EXPRESS. 

and then added 3 cents for profit — altogether 14 cents for the express 
company. But under the railway contract the express company 
is restricted to 52.50 per cent of the rate it fixes, and 47.50 per cent 
of the proceeds of each rate must go to the railway. Accordingly, 
the 14 cents computed is but 52.50 per cent of the rate he must fix ; 
that is, he must add the railway percentage of 47.50, or 13 cents, to 
the express company's 14 cents, making a rate of 27 cents. This 
13 cents on the 5 pounds for 36 miles equals $1.42 per ton-mile. But 
on a 100-pound package for 36 miles the railway receives just 14 
cents per ton-mile. If the 5-pound package simply paid the railway 
what the 100-pound package does, proportionately, the rajlway would 
get only 3 cents out of the 5-pound package and its rate would be 
just 17 cents, instead of 27 cents. We have thus an abnormal rate 
for the small package, with a consequence doubtless fatal to the 
mobility of a large part of such potential traffic. Conversely for 
both small and large packages in making long-distance rates. Let 
us take the coast-to-coast rates for our illustration. The rate from 
New York to the Pacific coast points is $13.50 per 100 pounds. Here 
the desirable value of the railway service must govern the rate 
maker. The railways receive $6.41 for their part of this service ; and 
who shall say that this is too much? But under the contract the 
express-rate maker must consider this $6.41 as but 47.50 per cent of 
the rate to be formed. Accordingly, he adds to the $6.41 the contrac- 
tual express percentage — $7.09 — and there results the $13.50 rate and its 
destruction of an unknown percentage of the potential express traffic. 
Stated in another way, we have: 

Rate for 5 pounds, 36 miles: 

Necessary express loading on $0.14 

Contractual loading to pay railway . 13 

Resulting rate . 27 

Rate for 100 pounds, 3,000 miles: 

Necessary loading to pay railway 6.41 

Contractual loading for express company 7. 09 

Resulting rate 13. 50 

In brief, the railway, on the small package and short journey, at 
one extreme, secures ten times what it ought; while on the other the 
express company accomplishes the same result. At no point, per- 
haps, does either get just what it ought to get for its part of the 
service, unless it be on the statistical average package of 32.80 pounds 
with its product of 51 cents. Meanwhile, perhaps, at no other point 
does the merchandise package pay just what it ought to pay on serv- 
ice standards. It must, under the contract, be either overloaded to 
protect the express company or the railway. All this is certainly 
true, even if the general financial results to the railways and the 
express companies should go unchallenged. And who is to blame? 
Manifestly the express railway contract. No other results are pos- 
sible under its terms. The general results may have been highly 
satisfactory to the express companies, but to the railways and the 
country the results simply signify a restriction of the quantum of 
the express traffic to one-half or one-third of its normal volume. 
Indeed, it is not improbable that the express railway contract is the 
principal cause of the higher ratio (16.42 as against 5.23) of the 
express to the freight charge here as compared with other countries. 



POSTAL ftXPKESg. 



11 



It is apparent enough that the high express charge and the low ex- 
press traffic coincide with the express railway contract only here. I 
insert a table (Appendix AD) giving typical rates on an English 
railway where the express service has not been contracted out. This 
table is significant because its 100-pound rates are the same as the 
American 100-pound rates; but the absence of the express contract 
has enabled the railway rate maker to give the smaller weights their 
relative rights. 

With the express-rate makers' situation thus defined, it will be 
easier to understand the general situation with regard to our express 
rates. 

PROHIBITIVE EXPRESS CHARGES. 

We should expect express charges to be higher per ton here than 
abroad — as much higher as our freight-per-ton charges. But no 
necessary economic cause is known which justifies a substantially 
higher proportion or ratio of the express to the freight charges here 
as compared with other countries. The average express charge per 
ton here is shown to be $31.20, while the average freight charge is 
$1.90 per ton, giving a ratio of the express charge to the freight 
charge of 16 (16.42) to 1. This expross charge includes the cost of 
such collect-and-delivery service as is rendered, covering, it is thought, 
about 90 per cent of the traffic. In the table now inserted the element 
of the expense of the express companies for collecting and delivering, 
amounting to 11.50 per cent, is excluded, because many of the coun- 
tries do not include this factor of cost. The table embraces 10 coun- 
tries, while the specific data upon which the ratios are based are set 
forth in Appendix B. All countries have been included where the 
express data is clearly distinguishable from general freight statistics. 

Ratios of average express charges to average freight charges in 11 countries. 



Countries. 



Average 
express 
charge 
per ton. 



Average 
freight 
charge 

per ton. 



Ratios of 
average 
express 

to 
freight 

charges. 



Argentina... 

Austria 

Belgium 

Denmark 

France 

Germany 

Hungary 

Netherlands. 

Norway 

Prussia 



$6.51 
3.77 

14.92 
5.49 
6.88 
3.80 
3.68 
2.43 
1.90 
4.32 



95 
,74 
,53 
,87 
,95 

76 
.93 
,67 
,49 
,86 



3.2 to 1 
5. to 1 

i 9. 3 to 1 

6. 3 to 1 
7. 2 to 1 
5. to 1 
3. 9 to 1 
3. 6 to 1 
3. 8 to 1 
5. to 1 



Average for 10 countries. 
United States 



27.61 



1.90 



5. 23 to 1 
14. 53 to 1 



i Belgium delivers parcels. 

Ratio express tonnage, 10 countries, to freight tonnage 1. 060 

Ratio express tonnage in United States to freight tonnage 0. 517 

Ratio express receipts, 10 countries, to freight receipts 5. 890 

Ratio express receipts in United States to freight receipts 7. 776 

Normal revenue ratio for United States as per express receipts above 2. 460 



Excess of American express receipts (216 per cent) 5.316 



12 



POSTAL EXPRESS. 



From this table it appears that while Argentina charges three 
times, Austria five times, Belgium nine times, Denmark six times, 
France seven times, Germany (including Prussia) five times, 
Hungary, the Netherlands, and Norway about four times as much 
for carrying a ton of express as of freight, the express companies of the 
United States charge nearly fifteen times as much, excluding the 
cost of their collection and delivery. 

No further statement need be made to show that the charges of 
American express companies are prohibitively excessive and such as 
to disqualify this service as a transportation agency. The instances 
given represent matter carried by passenger trains in all instances, 
and while higher charges for both the express and freight tonnage in 
America are justified, there is no necessary economic reason for a 
higher ratio of express charge* to freight charges. The presence of 
the express company is the only circumstance distinguishing express 
transportation here from that of the instances cited. In those the 
express company has no part ; the work is done by the railways. As 
we shall see later, the deficiencies of the express companies are con- 
stitutional, not gratuitous merely, and are such as can not be remedied 
through corporate agencies. 

PAUCITY OF TRAFFIC. 

It is believed that a great increase of the traffic would result from 
the reduction of the rates and the extension of the service beyond the 
cities to the country. That the traffic is now laboring under a radical 
restriction of volume because of the inhibitory charges and the ex- 
clusion of the rural population becomes apparent when compared 
with the express traffic in other countries. A table is now inserted 
giving comparative data in this respect (see Appendix T) : 

Ratios of express to freight traffic in several countries. 



Countries. 


Ratios of 

express 

to 
freight. 


Per capita. 


Express. 


Freight. 




1 to 64 
1 to 97 
1 to 82 
1 to 53 
1 to 113 
1 to 84 


Pounds. 
165 
117 
199 
141 
140 
68 


Tons. 
5.34 




5.63 


Belgium 


8.16 


France 


3.74 


Germany 


7.99 


Hungary 


2.77 






Average (except United States) 


1 to 82 
1 to- 165 


138 
99 


5.61 


United States 


8.15 







INADEQUACY OF PROPOSALS REGULATION. 

It may be suggested that such inhibitory high charges may be 
remedied by the r<igulatory action of the Interstate Commerce Com- 
mission. While the express reports show that the profits of the com- 
panies are clearly out of all proportion to the investment, they also 
show that these profits were but 8.44, 9.17, and 6.70 per cent of the 
gross receipts, or the average express charge, for the years, respec- 
tively, of 1909, 1910, and 1911. If all the profits were taken away 
the rate would not be substantially reduced ; while, of course, no such 



POSTAL EXPRESS. 13 

a reduction would be asked of or considered by a Government 
tribunal. A simple illustration of the regulatory function at work 
on a transportation rate will suffice to show the inapplicability of 
that method to the present express business. 

The theory of rate regulation, applied to normal transportation 
agencies, is that a system of rates yielding a definitely excessive per 
, cent of revenue may, by rate reduction, be correspondingly reduced. 
Take the A & B Eailway. Its capital investment is $100,000,000, 
its gross receipts $30,000,000, and its net earnings for dividends 
$9,000,000 — that is, 30 per cent of its average rate is profits, which 
yields 9 per cent profit to the capital invested. In such a case let it 
be contended before the regulating commission that the rates should 
be brought down to yield but a 6 per cent return on the investment ; 
a reduction of 10 per cent in the rates would, on the hypothesis, ex- 
actly produce the result. This is the case, on the average, with a 
normal public utility, whether a gas, electric company, or a street or 
steam railway; because in normal businesses of their character the 
capital necessarily invested bears a substantial ratio to the amount 
of business done and brings corresponding ratios of the net to the 
gross receipts. The express company does not belong to this order. 
As an intruder on the railway and postal functions, it requires prac- 
tically no capital as compared with the business done. In 1909 its 
investment in equipment, its only real capital, functionally con- 
sidered, was but $6,403,125, while its gross receipts were nearly 8 
per cent of the freight revenue of the United States, or $130,165,602 
from the package business, 8.44 per cent of which alone was profit. 

Suppose the commission were asked to reduce this profit to a nor- 
mal return on the investment, leaving a net return, say, of 10 per 
cent for the functional capital invested. Well, after allowing for the 
portion of the reduction that would be borne by the railways (under 
their percentage contracts with the express companies) the gross 
profits of the express companies would be but $600,000 out of 
$109,000,000, or one-half of 1 per cent of their gross receipts. Could 
either the express company or the tribunal afford to act upon a 
margin as close as this? To illustrate in another way: The weight 
of the average package in 1909 was 33 (32.52) pounds, which 
brought a gross rate of 51 cents. Of this 47.50 per cent was paid to 
the railways, leaving a net profit to the express company of 4.25 
cents in 1909, and 4.50 and 3.30 cents in 1910 and 1911, respectively, 
on the average package, or a general profit on the business of 8.43 
per cent, 9.17 per cent, and 6.70 per cent for the years named, but 
yielding the companies more than 100 per cent returns on the real 
investment for each year. What does 'all this mean? Simply that, 
although securing utterly egregious returns on the investment, they 
must rely for their profits on a percentage of the rate, or a margin 
so small that they can not safely make it smaller and be sure of 
any net return. The arithmetical margin of one-half of 1 per cent 
would, if it came, give the 10 per cent return; but the slightest 
unfavorable perturbation of the traffic might convert this favorable 
margin into an unfavorable one, i. e., from a profit to a deficit. 

But the difficulty of regulation does not end here. The ordinary 
minimum charge of the express company is $13.50 on coast-to-coast 
rates, out of each of which charges the railway receives its 47.50 per 
cent, and the express company the remainder ; that is, 13 cents on the 



14 POSTAL EXPRESS. 

small packages and short distance, and 26 cents on the average 
package of 51 cents; and on the coast-to-coast rate $7.09 out of the 
$13.50. Under the present methods of the express companies — their 
accounting practices — it is somewhat doubtful if the company actu- 
ally makes anything out of the 13 -cent return on the small package 
and journey. There is the delivery charge of about 5 cents, and gen- 
eral expense of even more. It may be that it is only the formula of 
" out-of-pocket expense," i. e., that on the whole, the expense of the 
day would be as great without it as with it, that enables the company 
to profit by this minimum charge. Thus as to the small package, 
although its rate is really very exorbitant the reduction might be 
justly resisted by the express company. Now we come to the coast- 
to-coast charge, $13.50 per 100 pounds; and here the express com- 
pany can have no justification for its exaction of $7.09 on this spe- 
cific service. But the carrying railroad must be considered in this 
instance, as its compensation, 47.50 per cent of the charge, is only 
$6.41 for carrying 100 pounds from ocean to ocean. Is this railway 
element of the gross charge too much? And yet the commission 
can only operate on the published rate; it can not reformulate the 
contracts between the express and railway companies, it is believed ; 
and to reduce the gross rate so as to give the express company just 
what it should receive for the coast-to-coast service would be to do 
a gross injustice to the carrying railroad. Thus at either extreme, 
the short distance or the long distance, because of the abnormal con- 
ditions involved — that is, the alien presence of the express com- 
pany — there is some impregnable right, of either express company or 
railway, to shield the offending condition from attack. 

But in practice, even when the justification for a reduction is pres- 
ent and the power and purpose active, the regulating board will 
hesitate to substantially reduce a rate in the fear of unduly trenching 
on private rights. It was this circumstance that Bismarck had in 
mind when on a similar subject he spoke of — 

The attempts to bring about reform by (regulatory) laws have shown the 
futility of hoping for a satisfactory improvement through legal measures with- 
out trenching materially on established rights and interests. 

With a profit margin, now, of less than 7 per cent of the rate 
to work on, the Interstate Commerce Commission would feel this 
constraint in a marked way, for even recent experience has shown us 
that the net return in a single year has shown a perturbation of 
some five times, in amount, the just sum that should go as recompense 
to real express capital. Obviously regulation can neither attain a 
just express rate or limit express capital to a fair return for its use. 
And this has been shown by the experience of nearly all the States 
which have attempted it. Their reformed rates have been enjoined 
by the courts, and on grounds of objection equally available against 
action by the Interstate Commerce Commission. 

COMPELLING THE RAILWAYS TO PERFORM THE SERVICE. 

A number of persons, regarding the express company as a mere in- 
truder in transportation, and reasoning a priori, suggest that the 
remedy lies in an act of Congress abrogating the express-railway 
contracts and excluding the express companies from the field ; at the 
same time requiring the railways to perform the service. Granting 
that such contracts may be so abrogated, it must be admitted that 



POSTAL EXPRESS. 15 

this course would bring the railway express rates within the possi- 
bility of some species of regulation. The margin of profit would 
then be the whole railway profit; so that the package rate might be 
slightly reduced without threatening disaster to the capital invested. 
Practically, the whole express company profit could be taken out of 
the rate, theoretically; for only a reasonable return on the eight 
or ten millions of dollars of functional capital actually supplied by 
express companies now, would be asked by the railways. Moreover, 
the express-transportation pay, or element of the rate (47.53 per cent; 
i. e. three-fourths of a cent a pound, on the average traffic), could 
be then inquired into, and if found too great, reduction might simi- 
larly be ordered. To sum up, under railway-express administration 
the excessive express profit (6.70 per cent in 1911) might be elimi- 
nated and the express railway pay reduced, possibly. These are the 
only advantages, if such. The elements wanting, however, in the pro- 
posal, are serious if not fundamental. Such a regime would neces- 
sarily multiply the number of operating express agencies into the 
number of railway companies now independently operating, i. e. over 
a thousand. The probable result of such a change is perhaps, not 
overstated in the following extract from the letter of the president of 
one of our largest railway systems. He says : 

It is gravely to be doubted, if the railways as a rule, could transact the 
{express) business so as to net as much out of it as the express company pays 
them. 

Assume that the roads radiating from Chicago should cancel their contracts 
with the express companies and organize to handle small packages : The first 
result would be an enormous economic waste in the duplication, triplication, and 
quadruplication of terminal expenses. At present the collection and delivery 
for a dozen roads is in the hands of one agency. Multiply this by the hundreds 
of cities and towns where the same conditions would prevail and it is easy to 
see that the eleven million of dollars of profit the express companies secure 
might readily fall short of what the railroads would lose should they discard the 
agency. 

The problem is to get the package rate somewhere as diminutive 
as the package. In order to do this the simplification and not the 
multiplication of processes and agencies is the great essential. And 
we have seen also in the treatment of " Transportation accountings," 
that a small package is now penalized to comparative extinction by 
the complexity of processes and agencies, unavoidable in intercor- 
porate relations, and which only a unification of the agencies and 
simplification of the agencies and simplification of the process can 
remove. 

Another element wanting in the proposal is the complete absence 
of a natural articulation of the railways with rural points. 

Only the postal system now has the required agency, whichl is 
obviously the rural delivery. Nor could the railways be fairly re- 
quired to enter into the work of supplying the need. The post 
office can articulate the railways with rural and urban popula- 
tion, while also relieving the small package of the burden of trans- 
portation accounting. In such a coordination the railways will be 
only an element in the service, the locomotive one; the moving con- 
duits for the passage of the shipments from the consignor to con- 
signee. The work of collection and delivery, and of caretaking be- 
tween, are the main elements, and such as to require a single inter- 
mediary (with its corresponding simplicity of relation and processes) 
between the point of sending and that of receipt. 



16 POSTAL EXPRESS. 

PARCEL-POST SCHEMES — DIFFICULTIES AND INADEQUACY. 

. There remains to discuss the numerous proposals with 11-pound 
limits and 8 or 12 cent pound rates for the carriage of parcels under 
the status quo of the postal-railway pay. At the present the 
postal-railway pay is based on a flat distance standard, i. e., the 
amount increases in exact proportion to the number of miles on like 
aggregate weights. None of these bills propose any method of secur- 
ing a declension in railway pay as the journey of the packages in- 
creases, and under their operation the department would be paying 
the railways in arithmetical proportion to the length of the haul, 
i. e., about 300 times as much for a package going from coast to 
coast as for a package going, let us say, just 10 miles to the next 
station. These parcel-post proposals simply adopt in silence the 
present method of postal-railway pay designed for letters where the 
bulk and space requirements are the greatest known to transporta- 
tion and which, moreover, only consumes about 24 per cent of postal 
revenues. But the parcel traffic falls with the express and not let- 
ters in these respects, and so on both operating and marketing rea- 
soning such parcels require distinct rate treatment. 

The average rate paid the railways by the express company in 
1909, excluding the weight of equipment, was three-fourths of a cent 
(0.74) a pound; and the postal-railway pay per pound, also excluding 
equipment, in 1908, was 4.06 cents. The postal haul for the latter 
rate is 620 miles, while including postal equipment the haul was 
but 435 miles, and the postal-railway pay 2.47 cents per pound. The 
average haul of the express shipment is not definitely known ; but as 
the freight haul here is 253 miles and elsewhere the express haul is 
usually longer than the freight, it is assumed that our express haul 
is not less than about 200 miles, or 196 miles as accepted in this study. 
The express-railway and postal-railway pay differ most essentially 
in another respect. While, as stated, the postal pay increases arith- 
metically, the express-railway pay has a declension for increasing dis- 
tances, under which, while, a 5-pound package pays at the rate of 
$1.42 a ton-mile for a journey of 36 miles, for a journey of 3,600 
miles the pay is about 4 cents a ton-mile, with an almost correspond- 
ing declension for increasing weights on short distances. Since this 
fact of declension is fundamental I shall feel justified in elaborating 
its actual bearings upon the rates possible under properly consid- 
ered parcel-post propositions. 

The method of express railway pay is to take the express waybills 
one by one, find the gross charge, and pay the railway the percentage 
fixed, from each package, according to the express-railway contract. 
In 1909 the percentage amounted to 47.53 per cent on each package, 
a little less than one-half the express charge, as an average for the 
whole traffic. Thus, on a 10-pound package from Washington to 
Baltimore, 40 miles, the express charge is 30 cents, and out of -this 
the express company credits the railway, on the average, with 14 
cents, equaling $28 per ton- journey and 70 cents per ton-mile. From 
Baltimore to Pensacola, Fla., 1,026 miles, the express rate is $1.10, 
out of which the railway similarly receives 52 cents, equal to $104 
a ton-journey and 10 cents a ton-mile. To Seattle from Baltimore, 
3,026 miles, the 10-pound rate is $1.50, of which the railway receives 
71 cents, or $142.50 per ton-journey and 5 cents (4.75) per ton-mile. 



POSTAL EXPRESS. 



17 



All of which means that there exists in the express traffic a principle 
of declension, automatically reducing railway transportation pay 
with the increase of the journey, a principle, as we shall see in a later 
chapter, which is not only operatively just, but also necessary to se- 
cure rates upon which articles can move to their natural market with 
a profit, whether the distance be great or small. Meanwhile the 
postal railway pay, including equipment, now averages 9 cents a 
ton-mile, however small the package or however great the journey. 
Its inflexibility, compared with actual express rates, especially on the 
heavier weights, for longer distances, is shown as to 21 different dis- 
tances comprised within the contour of the country, ranging from 36 
to 3,600 miles, by the following table. The data for this table will 
be found as Appendixes D and V. 

Table showing rates of compensation per ton-mile paid the railways by the 
express companies on the contractual average bases of lfl.5 per cent of the 
express " merchandise " rates, according to weight of package and distance 
carried. 



Miles. 


5 
pounds. 


10 
pounds. 


20 
pounds. 


30 
pounds. 


40 
pounds. 


50 
pounds. 


60 

pc"inds. 


70 
pounds. 


80 
pounds. 


90 
pounds. 


100 
pounds 


36 


$1.42 
1.09 
.68 
.54 
.41 
.35 
.30 
.26 
.24 
.21 
.19 
.16 
.15 
.12 
.12 
.11 
.10 
.10 


$0.86 
.59 
.40 
.32 
.25 
.21 
.19 
.16 
.16 
.14 
.13 
.11 
.10 
.09 
.09 
.09 
.08 


$0.42 
.31 
.22 
.18 
.15 
.13 
.12 
.10 
.10 
.09 
.09 
.08 


$0.36 
.25 
.18 

• .14 
.12 
.10 
.09 
.08 
.08 


$0.29 
.21 
.15 
.12 
.10 
.08 


$0.25 
.18 
.14 
.11 
.09 


$0.23 
.18 
.13 
.11 
.09 


$0.20 
.16 
.12 
.10 
.08 


$0.18 
.14 
.11 
.09 

.08 


$0.16 
.12 
.09 
.08 


$0.14 


62 


.11 


100 


.08 




.07 


196 


.07 
.06 
.06 
.05 
.05 
.05 
.05 
.04 
.04 
.04 
.04 
.05 
.04 
.04 
.04 
.04 
.04 


.06 


255 


.07 
.06 
.05 
.06 
.05 
.05 
.05 
.04 
.04 
.04 
.05 
.05 
.04 
.04 
.04 
.04 


.07 
.06 
.05 
.05 
.05 
.05 
.05 
.04 
.04 
.04 
.04 
.05 
.04 
.04 
.04 
.04 


.07 
.06 
.05 
.05 
.05 
.05 
.05 
.04 
.04 
.04 
.05 
.04 
.04 
.04 
.04 

.04 


.06 
.06 
.05 
.05 
.05 
.05. 
.04 
.04 
.04 
.04 
.05 
.04 
.04 
.04 
.04 
.04 


.06 


320 


.07 
.07 
.07 
.06 
.06 
.05 
.05 
.05 
.05 
.05 
.05 
.05 
.04 
.04 
.04 


.05 


402 


.05 


484 


.05 


576 


.07 
.07 
.06 
.06 
.05 
.05 
.06 
.05 
.05 
.05 
.04 
.04 


.05 


677 


.05 


787 


.04 


905 


.07 
.06 
.06 
.06 
.06 
.06 
.05 
.04 
.04 


.04 


1,030 

1,151 

1,297 

1,450 


.04 
.04 
.05 
.04 


1,597 


.07 
.05 
.05 
.04 


.04 


2,500 

3,136 

3,652 


.06 
.05 
.04 


.04 
.04 
.04 



Note. — The like ton-mile compensation to the railways for postal purposes now averages 9 cents per 
ton-mile for all weights and distances. 

Down to the line drawn diagonally across the tahle the express railway pay on merchandise packages 
exceeds the amount which the Government would have to pay under present postal-railway compensa- 
tion laws. Below the line, a parcels traffic being added, the Government would have to pay 8 cents a 
ton-mile, and the express companies as much less as the figures in the table indicate. 

It will be observed that at about 905 miles the declension in ex- 
press-railway pay substantially reaches a stationary point at 4 cents 
a ton-mile. From 36 miles up to this point the railway pay, per 
journey, increases approximately as the square root of the number 
of miles of the journey; that is it doubles as the journey quadruples 
in length. From 905 miles on, the express railway pay itself be- 
comes stationary or rather increases arithmetically with the mileage, 
like the postal-railway pay. This declension will be discussed again, 
and is here simply denoted as the Talcott formula. 

There is now inserted a table covering the same distances and 
weights, giving actual express merchandise rates, and in parallel 
columns feasible parcel-post rates, based on present postal railway 

S. Doc. 379, 62-2 2 



18 POSTAL EXPRESS. 

pay, with stated loadings for "collect and delivery" and "general 
expense," as indicated at the ends of the columns, the sufficiency of 
which is later considered. The rate adopted for postal-railway 
transportation of the parcels is uniformly 8 cents a ton-mile, which 
equals 1 cent a pound for a 250-mile journey. The average now 
paid the railways for letters, etc., is 9 cents a ton-mile, under a sliding 
scale, by which the railway pay declines per 1,000 pounds as the 
daily weights increase on the particular railway. The data sup- 
portive of the loadings for transportation, 8 cents a ton-mile, is set 
forth in Appendix V. The effect of adding any considerable parcels 
weight to the mail wiJl be to reduce this average pay of 9 cents to 
8 cents a ton-mile, about the possible minimum ; and so, if the load- 
ings given for " collect and delivery " and " general expense " are 
fair approximations of the costs of these services the parcel-post 
7 \tes here given may be accepted as entirely feasible. 



POSTAL EXPKESS. 



19 



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ft O £,£ rQ « 

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M S g 03 c3 > £? 
^ ft § ft,3 o3 ^ 



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o 



rH HHNNIN CO CO CO •«*! lO to tO OCM "f 



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-I OO tO 00 O lO GO CO CO lO i— I CO 00 CM CD Ci CO CO 



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20 



POSTAL EXPRESS. 



If it be accepted that the express rates ought not to exceed about 
one-half of the present express charges (a deduction more than sup- 
ported by the experience elsewhere), then the underscored lines in 
the table denote the distance limits for the several weights at which 
the feasibility of a parcel post, predicated on present postal-railway 
pay, ceases to be desirable. If the rates that will move the greatest 
volume of marketable traffic are also the rates which tend to produce 
as well the highest economy of movement and the best revenue, a 
Government acting for national objects should not lend its approval 
to a rate structure so high as to defeat these objects. Accordingly, 
it is submitted, that on present postal-railway pay and its inflexible 
flat rate the whole country can not be embraced by rates that are at 
once sufficiently low and yet wholly self-supporting. 

PARCEL-POST RATES — EXAMPLES. 

The parcel-post bills before Congress fall into two divisions — one 
fixing 12 cents a pound and the other 8 cents for all distances. In 
the table following these rates are compared with existing express- 
company rates for a distance of 196 miles, which is the average length 
of the journey of packages according to express experience, and there- 
fore represents the practical average requirements of our people. 

Table comparing parcel-post rates with express-company rates. 



Parcel-post rates. 



12 cents 
per pound. 



8 cents per 
pound. 



Express- 
company 
rates. 



1-pound rate. 
2-pound fate . 
3-pound rate. 
4-pound rate. 
5-pound rate . 
6-pound rate. 
7-pound rate. 
8-pound rate. 
9-pound rate . 
10-pound rate 
11-pound rate 

Total... 



.12 
.24 
.36 

.48 
.60 
.72 
.84 
.96 
.08 
.20 
.32 



l $0. 10 
.16 
.24 
.32 
.40 
.45 
.45 
.45 
.45 
.45 
.50 



7.92 



5.22 



3.97 



i If prepaid the express companies will carry books at 2 ounces for a cent, minimum 10 cents, and mer- 
chandise 1 ounce for a cent, minimum 15 cents, to any point on their lines, up to the postal weight limit 
on such classes. 

It appears that the 12-cent parcel-post rate is nearly twice the 
present express rates on the averages of the 11 pounds, and the 8-cent 
rate more than one-fourth greater. If during the year one needed to 
make shipments covering the whole scale from 1 to 11 pounds, his 
total bill by express would be S3. 97, as against $5.28 by the 8-cent-a- 
pound and $7.92 by the 12-cent-a-pound parcel-post bills. To be 
more simple, if more abstract, the express companies now charge 
$31.20 the ton of packages; the 8-cent postal rate would be $160 the 
ton, and the 12-cent $240 the ton, the only advantage being 
delivery for the postal package in the country when it could pay such 
a rate. The rates conceived to be feasible, about $17 per ton, under 
a system of postal express, are set forth in a later table. 



POSTAL EXPRESS. 21 

I give up the man who would ignore distance in making parcel 
rates — 8 or 12 cent a pound man and his 11-pound limit. He sim- 
ply refuses to understand the problems involved. He refuses to con- 
sider the shipper's right (on short distances) to pay simply for what 
he gets, and get that for which he is willing to pay, while (on long 
distances) he threatens to mulct the Government in a transportation 
deficit. As it will cost 1 cent a pound for 250 miles, so it will cost 
12 cents a pound for 3,000 miles, and 14 cents a pound for 3,500 miles, 
for the mere element of transportation, and any flat rate must cheat 
the shipper on the short journey and cheat the Government on the 
long journey, saying nothing of its killing effect on the short- journey 
traffic, embracing nearly the whole business. The average of 253 
miles for the freight haul roughly indicates the normal mobility of 
the traffic, and while all distances should be considered and embraced 
with a view to both economic and national policy, making the short 
journey pay for the long journey, or robbing Peter to pay Paul, can 
only make beggars of them both. 

THE RETAILER. 

It is in this state of things, the persistent and uninformed ad- 
vocacy of like rates for all distances, and the arbitrary limitation of 
the weight to 4 or 11 pounds, that the opposition of some of the retail 
merchants begins. The fiat rate seems designed in form to give the 
great department store, the retailers' distant rival, an opportunity to 
ship at the expense of the taxpayer, i. e., at rates insufficient to pay 
for such service, at the same time that it exacts of the nearby mer- 
chant a rate much above what is necessary. Thus outside of the 
cost of collect and delivery and some general expenses which are prac- 
tically the same whether the journey be long or short, the rate needs 
be but about one-tenth of a cent a pound for 25 miles, while for 
1,000 miles the transportation outlay would be 40 times as great. 
Should the local merchant have to pay this difference merely to 
gratify the flat-rate bungler, who prefers his simplicity to the more 
painstaking adaptations necessary to be just to the public and the 
traffic? Moreover, the design to discriminate against the local mer- 
chant seems to be shown in other ways than taxing him to pay for 
his long-distance rival's shipments, and most obvious of these is the 
restriction of the weight of the postal shipment to 4 or 11 pounds. 
What can the purpose be in this ; is it not to make the privilege just 
large enough to fit his patron and distant rival, and just small enough 
to exclude him, the local retailer? His business is in wholesale lots, 
100 pounds or more, with a cheaper rate incident thereto. If his 
patrons and distant rivals are to have relief from the prohibitive 
express charges, why is the weight limit just so arranged as to exclude 
the local retailer ? Obviously, his right to relief from an intolerable 
express situation is as meritorious as the right of others. It is con- 
ceded that the high charge and inadequate service of the express 
companies is the condition calling for remedy. But the retailer is 
suffering as much as, or more than, any other class from this condi- 
tion. Then why, the retailer justly asks, should he be excluded from 
the relief the lawmaker is going to extend ? Why not have the weight 
limit raised to include him as well as his patron, and rates based on 
the cost of the service, according to distance and weight? We have 



22 POSTAL EXPRESS. 

seen the small margin of rate profit at which the express companies 
are doing business. In 1911 it was just 6.70 per cent; therefore any 
circumstance which takes away an integral part of their traffic, with- 
out eliminating the express companies from transportation, must 
force them to raise their rates on the remaining, i. e., the heavy- 
weights traffic. The retailer stands to have his express rates raised, 
not lowered, by such proceeding as a consequence of the 11-pound 
limit. And instead of relief being granted him from the express 
situation with the others, his rates may, indeed, be increased. 

Whatever its motive, partiality is always likely to inflict actua] 
injustice ; and the partial remedy contained in these parcel-post pro- 
posals for what is admitted to be the general evils and inadequacy 
in our express conditions is no exception to this rule. In truth it is 
impossible for either student or statesman to approach this matter 
from either the economic or social angle without seeing that it in- 
volves the whole express subject, and should be so treated. A solu- 
tion that will make the express rates just for all is the solution re- 
quired by all interests. The citizen is as much entitled to have the 
remedy sufficient for this purpose as he is to have equality before the 
law. The full remedy, embracing not merely just rates but an 
articulation of the railways with the country stores, can not be less 
than a great forward step in transportation; and he who opposes 
himself to such improvement is merely parting company with civ- 
ilization, and civilization in turn can only leave him behind. 

In our days of wayward and shifting fashions the merchant's 
problem is to vary his stock enough to satisfy demands, and yet keep 
his total investment down to a point that will permit some profit on 
his possible sales. The leaders in mercantile affairs advise more 
frequent purchases, adapted to the specific demands of the trade as 
they arise, in small orders. This the prohibitive express rate largely 
prevents in the towns, and the nonextension of the express service 
to the country wholly prevents for the country store. Nor will the 
retailer, as a class, necessarily suffer by the loss of his trade in the 
farm products. What the workman saves on these he will have to 
spend with the retailer on other things in his store. It is a mistake 
to suppose that no transportation, or deficient transportation, is an 
advantage to any class ; and surely no one stands to benefit more than 
the merchant by reasonable express rates and a wider extension of 
the service. 

GENERAL REMARKS. 

Other difficulties in such limited remedies for the express situation 
need only be suggested : 

(a) The postal system would have to install urban delivery 
wagons at a cost its traffic would not justify, with but a part of the 
package business. 

(b) The express companies still in the fields, the wastes of service 
would be increased, and the people have to pay all. 

(c) The Government, as a moral agent, with an inelastic rate as 
proposed, would be at the mercy of its unrestrained express com- 
petitors. 

(d) The contracts of the express companies with the railways per- 
mit the former to make rates as low as 150 per cent of the freight 



Postal express. 23 

rate; automatically reducing express-railway pay to any point, in 
effect, which they might do to cripple the postal department in given 
instances. Thus the Government might have to pay three or four 
times as much for transportation as the express companies. 

IMPOETANT ELEMENTS OF AN ADEQUATE SYSTEM. 

For the sake of brevity I state the principal elements categorically : 
(a) Fast service. 

(&) The most extensive collect and delivery service, economically 
feasible, requiring urban and rural agencies. 

(c) The express-railway contracts to secure the necessary de- 
clension in railway pay. 

(d) Cheap capital and effective public service motive. 

(e) Elastic rates, graduated to the differing and changing cost 
of service, fitted to move traffic to natural market; departmental 
expert rate makers for this purpose, and not law-made rates. 

(/) Simplified administrative processes and methods ; and economy 
of single working organization. 

(g) The hundred-pound weight limit to extend service to mer- 
cantile interests, urban and rural, and enable service to move neces- 
saries from farm or garden to consumers, and reduce the cost of 
living. 

With regard to the element of " fast service " it is now commonly 
rendered by the railways for the express companies in connection 
with the passenger service. There is now no fast freight service for 
less than 100-pound lots ; but this feature is reserved for subsequent 
consideration. 

" COLLECT AND DELIVERY." 

It is obvious that one of the elements most wanting is the service 
described as " collect and delivery," necessary between consignor 
and railway at the beginning and railway and consignee at the con- 
clusion of the act of transportation. Our country is utterly deficient 
in this respect as to the " country " or farming population. In towns 
of about 3,000 or 4,000 population and up, the express companies 
do render this service for such traffic as their rates permit to move; 
but what is required is a service as extensive as the postal agency, 
which reaches cities, towns, and country with the degrees of efficiency 
of the urban and rural deliveries, conceded to far excel such delivery 
as the express companies give. 

There can be no doubt that with regard to this collect and delivery 
the postal department is the only agency to which we can look for a 
service sufficiently extensive to be really efficient. It only remains 
to observe that with regard to the farming part of the country the 
service already exists in the form of rural free delivery, equipped 
and paid for, and actually waiting with empty wagons to receive 
the traffic. 

The best computations I have been able to make show that it costs 
the express company an average of about 5| cents per package of 
32.80 pounds for its pick up and delivery service. Other experience 
on the subject is that of the New York merchants given at the 1911 
hearing of the House Postal Committee (pp. 104-105 and 301), to the 
effect that it costs them an average of from 3J to 4 cents per package 



24 POSTAL EXPEESS. 

(size and weight not limited) to deliver their sales within an area 
of 20 to 30 miles around the city. 

The familiar ice and milk agencies probably show the lowest cost 
at which this service can be performed, with the value of article 
delivered included in a 4 or 5 cent charge, and without return 
traffic. In Germany delivery charges for packages per post on 
schedule trips are 2-| cents for urban up to 11 pounds and 3J cents 
up to 110 pounds ; while rural delivery is 2 \ cents for 5 \ pounds and 
5 cents up to 110 pounds, with 22 cents for special rural delivery 
and 10 cents for special urban delivery. In France the delivery 
charge is 5 cents for packages up to 22 pounds. The expository 
rates given for the United States begin with a minimum of 5 and 6 
cents for packages of 10 pounds and under, of 7 cents from 10 to 
20 pounds, and an additional cent for each additional 10 pounds up 
to 100, or 15 cents per 100 pounds. We should accordingly be about 
doubling the European charge and giving the Treasury a guaranty 
of 50 per cent beyond the present expense to the express companies. 
They, however, do not deliver to the country. But it is suggested 
that this extra 50 per cent loading will cover such extra service, even 
were it not already largely paid for in the form of rural free delivery. 
Moreover, in the express expense for this purpose there is included 
the wastes of " common points " service, where from two to eight 
different express companies maintain their delivery service. It is 
believed the loadings for collect and delivery would prove ample 
as proposed. 

POST OFFICE GENERAL EXPENSE. 

A flat charge of 5 cents per package is made the loading to pay 
this service. In the discussion of " Transportation accounting " I 
have called attention to the very small service required in the re- 
ception and tagging of the package. It is thought that 5 cents would 
be sufficient to cover such cost and the postal attention in transit. 

RAILWAY PAY AND THE EXPRESS CONTRACTS. 

It is desirable that measures, taken to secure relief for the small 
consignment, should not interfere with railway practices or methods. 
As often as they are disturbed new problems are created, to say 
nothing of the maleconomy which may follow to both agencies. And 
so, even were it possible with respect to the individual railway, at 
present, to ascertain the pound rate paid it by the express company, 
it is a question whether it would be fair (or politically feasible) to 
require the railway to give the Government the average rate for carry- 
ing parcels, which it now gives the express companies, without taking 
over the whole express function. While on its face it might seem 
like merely asking for equal rates, as a matter of practice, it would be 
asking them to create and maintain an additional service ; that is, con- 
duct two services, one for the postal department and another for the 
express companies, at what would prove to be but a little or no in- 
crease of gross compensation. Moreover, nearly all their contracts 
with the express companies give the latter a contractual monopoly 
of the service, and these contracts have been approved by the Su- 



POSTAL EXPRESS. 25 

preme Court in express cases (117 U. S. Rep., p. 1). While the 
Government might force a breach of these monopolies in its own 
favor, yet it is likely the courts would hold that such a proceeding 
amounted to taking private property for public use, and that th« 
Government would have to pay the express companies, perhaps, as 
much as buying them out would cost. Hence the desirability of se- 
curing the express-railway contracts by fair purchase, even though 
compulsory. Moreover, the public should not be called on to main- 
tain two packages transport systems. One is costly enough, and if 
either one should give the economically desirable rates, the existence 
of the other would be imperiled or destroyed. The present agency is 
an entrenched monopoly. There is no competition even at common 
points. Monopoly and a real public-service motive are necessary 
to economical results. 

Outside of the waste involved in maintaining two services, there 
are very direct reasons why the express contracts should be secured. 
The postal system requires them in order to obtain : 

(a) The declension in express-railway pay, necessary for a desir- 
able zone system. 

(b) The numerous "depot" and storage privileges accorded the 
express companies by the railways. 

(c) Conservation of structural factors in the express institution 
of intrinsically serviceable character. 

(d) To avoid controversies* and, perhaps, serious mistakes with the 
railways incident to entirely new relations. 

PURCHASING THE EXPRESS COMPANIES. 

Hardly any person will question the wisdom of securing such ad- 
vantages ; and certainly no one who faces the package-transport ques- 
tion seriously will deny the advantages themselves. The depot priv- 
ileges of the express company are simply indispensable to an efficient 
and economical administration of the business. If the postal system 
has to provide itself with these facilities by rent or purchase, it 
would find the cost to be much greater than the purchase of the ex- 
press contracts. But it is the history of the express company which 
gives the real trouble here. The people do not object to paying for 
what they require. It is the conviction that express capital does not 
represent any actual investment, but, such as it is, is made up of 
accumulated excess profits in the past. The moral antagonism to 
paying them for that which they have unrighteously taken from the 
people in excessive profits is the root of the opposition. It is the 
same feeling which many entertained toward paying for the slaves' 
emancipation, but we know now that the cheapest way for the 
emancipator, and the best way for both slave and master, would 
have been to recognize the commercial facts by fair payment. 

Fair payment, or "just compensation," does not mean a capitali- 
zation of the express profits. If they have succeded in extracting 
unjust profits this gives them no title to ask unjust " compensation." 
Their unjust profits are now subject to be taken away by rate reduc- 
tions by the Interstate Commerce Commission, and the Supreme 
Court has decided that such profits may not be capitalized as against 
the State. (212 U. S. Rep., p. 19.) 



26 POSTAL EXPEESS. 

In this connection it may be well to suggest that Congress is not 
the agency, under the decisions, to which is given the power to deter- 
mine the amount of the compensation to be paid for these properties. 
That function is discharged by commissions and courts, and so in no 
case can the question of the amount to be paid be settled by Congress. 

Congress can, however, and it should, of course, approximate what 
the gross cost would likely be; and for legislative purposes this can 
be sufficiently done by a reference to the general balance sheet of the 
express companies, which is inserted as Appendix C. 

An inspection of the balance sheet shows that the items which are 
directly devoted to the service and really * function as express com- 
pany assets, are as follows : 

Real property $14, 932, 169 

Equipment 7, 381, 405 

Materials and supplies '■. 138,210 

Advance payments on contracts 5, 836, 666 

Franchises, good will, etc 10,877,369 

Total invested capital 39, 165, 819 

The balance sheet shows other assets of $147,055,554 not devoted 
to the function and which are wholly separable from the express 
service, per se, not necessary to be acquired, but which may be re- 
tained by the companies without impairment of their values. For the 
purposes of this measure the value of the rights to be acquired will 
be treated for simplicity's sake as about $40,000,000 and the annual 
postal interest charges as $1,000,000. The courts will at length de- 
termine what, in detail, the compensation shall be, and the bill pro- 
vides the machinery for determining the compensation according to 
the usual proceedings in such cases. 

ECONOMICAL CAPITAL. 

With reference to this element the solution is easy. The credit of 
the Nation is such that it can obtain its capital at a minimum cost, 
and an interest rate of 3 per cent, is predicated for the bonds, if any 
be necessary, to be issued for the payment of the express properties. 

THE PUBLIC SERVICE MOTIVE. 

In institutions, as with individuals, motive is everything. The 
motive to serve one's self is the common motive, and to impose suffi- 
cient restraint upon its operation, when too unsocial, is, stated in a 
broad way, the principal object of government. There is much 
illogical complaint in this respect against what are called " public 
utilities." Their owners, who have invested their money with the 
purpose of gain, are expected to behave differently from investors 
in general. Of course they do not, but why should we expect them 
to ? Because they have a monopoly it is argued. Well, this may im- 
pose an inferential duty, yet who will say that it can have any de- 
cisive influence upon the normal motive of the investor to gain all 
he can ? 

Where public needs and social considerations, as in this instance, 
become the principal and dominating purpose, where imperative pub- 



POSTAL EXPRESS. 27 

lie service is the object the world naturally has not yet found the re- 
stricted private motive adequate to the work. Now, besides profi- 
cient rate makers and elastic rates to move the traffic, something else 
is required in order to get the best results out of this small-shipment 
traffic. I hope I shall not be misunderstood when I suggest that the 
private motive has shown itself to be inadequate. Suppose you go 
to an express company to-day and say, " You moved 4,000.000 tons 
of express last j T ear and your gross receipts were $132,000,000 and 
your profits were $11,000,000. Cut your rates in two this year and 
the traffic will amount to 8,000,000 tons. Your profits may be less, 
but the service to the public will be doubled." What would an ex- 
press company do? 

It would do just what the average individual would do, act on the 
natural private motive, retain the higher profits and the smaller 
business. But you go to a public-service institution like the postal 
department and you find a wholly different motive. The postal sys- 
tem would say, " If cutting the rate in two will double the service, I 
will take my chances with the profits." That is exemplified in the 
reduction of postal rates throughout their history. 

Even a small deficit for experimental purposes would be justified, 
especially if the rate were elastic and the postal department could 
protect itself by adjustments of the rate. If you start out with the 
assurance that the service would be doubled and the deficit would be 
1 per cent, to ultimately disappear with the development of the traffic, 
a public-service agency like the Post Office would be more than 
justified, because in that instance it is losing 1 per cent in one pocket 
but it is making 100 per cent in the other pocket — the people and the 
postal system being identical terms. 

Now, the express companies constitute the most irrefragable mo- 
nopoly; and where monopoly obtains rates can be made relatively 
high or low, within limits, according as you wish to regard the divi- 
dend. An English railway some 60 years ago had the question pre- 
sented to it as to how to graduate its passenger rates to securing the 
best dividend. Much as one adjusts his opera glass in the theater to 
obtain the clearest line of vision these railway officers adjusted the 
passenger rates. They tried rates all the way from 6 cents a mile to 
one-half a cent a mile, and found that as the rate was 3J cents a mile or 
one-half cent a mile, the higher charge produced 6 per cent and the 
lower charge only 5 per cent dividends; and acting on the private 
motive they rejected the rate which produced the greater public 
service. But in such a case any man of common sense would say 
that a system in which we are all stockholders, like the postal de- 
partment, would be foolish to prefer the 3-cent rate and kill so much 
useful traffic. Like the attendant at the theater, proficient rate 
makers in postal transportation would adjust their rates to move the 
greatest amount of traffic consistently with the cost of the service, 
and in order to reduce the average cost of each shipment the greatest 
possible amount of traffic should be moved. 

While the railways alone can not articulate the farm with the 
kitchen without the postal agency adjunct for collection and de- 
livery in town and country, they would greatly profit by having a 
low-priced traffic converted into the highest class. 



28 POSTAL EXPRESS. 

ELASTIC RATES AND PROFICIENT RATE MAKERS. 

One of the substantially justified boasts of American railway ad- 
ministration has been that in spite of obstacles, and the admitted 
evils of discrimination, taking their freight rates, in a larger view, 
they have been so made as to move the products of the farm and the 
factory to their natural market, when once gotten to the rail, and 
usually with a profit to the producer. In order to do this there has 
been for two genesiations an adaptation of the rate to what the article 
will bear and move to its natural market. They could not have ac- 
complished this, measurably well as they have, either on flat rates or 
mileage distance rates, nor yet by charging each shipment a quanti- 
tative proportion of the cost of the whole service. To adopt rates 
that an article can not pay and move to its market with a profit is, in 
effect, to deny the article the right of transportation; any univer- 
sal rate, i. e., law-made rate, incapable of change with changing con- 
ditions must, on this account, with respect to a large part of the 
traffic, be prohibitive. The express companies have yielded some- 
what to this consideration, for they have rates which will permit 
given articles to move, as to which their merchandise rates would be 
mere destruction. It is patent enough that law-made rates would be 
too rigid, even if first rightly made. 

It is only once in a generation that Congress commonly gives its 
attention to a noncurrent subject; and as traffic conditions would 
require almost constant adaptations of the rates in the interest of 
the service and the public served, a special board similar to, if not 
indeed, the Interstate Commerce Commission itself, ought to be 
charged with the duty of making rates and determining the many 
other minutias of the system. In no country where government 
ownership of railways obtains are the rates legislatively made. The 
subject is one calling for administrative rather than legislative atten- 
tion. Congress in practice would either make the rates too high 
(oddly enough the threatened danger) and inhibit the potential 
traffic or make them too low and work a needless deficit on the 
department, saying nothing of the special-rate privileges thus cre- 
ated and always hard to dislodge. With the progress of government 
and civilization Congress, without rate making, will have more than 
enough general legislative work to do ; and it is only the dreamer and 
toy maker who should wish to impose a nondepartmental and equally 
inexpert and unadapted rate condition upon the commerce of a 
country. With our long distances and corresponding dependence on 
adequate transportation conditions the argument for real compe- 
tency in the rate makers, i. e., for the service of the Interstate Com- 
merce Commission or a body like it, rather than a bill writer as to 
the required rates, becomes unanswerable. Congress has never un- 
dertaken to make freight rates for the railways. It assigned the 
work instead to the commission which has like power over express 
rates. 

There is as much reason for leaving it there and as little for taking 
it away under the proposed system as the present. And here we see 
again the infirmity of the merely partial treatment of the express 
subject contained in the parcel-post proposition, namely, its law- 
made, rigid, flat, and commercially unadapted rate. The rate sub- 
ject is not a plaything, however, and should be handled by methods 
for making useful tools and not childish toys. 



POSTAL EXPKESS. 29 

MALECONOMY OF EXPKESS COMPANIES, AND SAVING UNDER POSTAL 

MANAGEMENT. 

The maleconomy of the express company regime in the United 
States flows from the artificiality and parasitic relationship of these 
companies to the railways, and to their complete absence of relation 
with the postal system. Only maleconomy may be expected where 
the normal agency, the post office, is deprived of its function — dis- 
placed by another organism abnormally articulated to the railway 
at one end and not at all to the natural distributing postal agency at 
the other. One of its fundamental failures — to properly discharge 
its spurious function (service to the country) — has been pointed out. 

The classification of operating expenses under which the accounts 
of express companies are kept divides the express into four general 
heads, as follows : " Maintenance," " Traffic," " Transportation," and 
" General expense." 

" Maintenance " expenses represent the cost of maintaining the 
plant, such as cost of repairing and renewing buildings, wagons, 
automobiles, office furniture and fixtures, renewal of horses, and cost 
of superintendence of such maintenace. 

" Traffic " expenses represent, broadly, the cost of securing traffic, 
covering such items as pay of traffic managers, expenses for advertis- 
ing, for printing tariffs and classifications, for membership in com- 
mercial bodies, and so forth. 

" Transportation " expenses cover the cost of conducting trans- 
portation, the plant being considered as a going concern. Under this 
head comes the pay and expenses of officials directly in charge of the 
employees; pay of drivers, porters, messengers on trains; the stable 
expenses, such as rent of stables, horse feed, horseshoeing ; payments 
for loss and damage; payments for injuries to persons; rent of office 
buildings; stationery used in the local offices; and all similar items 
of expense. 

Under " General expense " comes the pay and expenses of the 
chairman of the board of directors, the president, treasurer, auditor, 
and other general officers; the salaries and expenses of their clerks 
and attendants; all general office supplies and expenses; law ex- 
penses; insurance, pensions, and cost of stationery and printing used 
in the general office. 

Each of the four general accounts to which reference has been 
made is subdivided into a number of primary accounts in order to 
still further classify the items of expense; and the saving which it 
is estimated can be made in operating expenses, through the consoli- 
dation of the plants of the 13 separate express companies into a 
postal express organization, has been calculated for each of the pri- 
mary accounts. As a result of such calculation it is found that, 
taking the total expenses of the 13 companies for the year ending 
June 30, 1909, as the basis of comparison, a saving of $22,888,477 can 
be made, or a little more than 40 per cent of the total operating ex- 
pense of $56,273,055. This saving is distributed among the general 
accounts as follows : 

Maintenance $1, 457, 000 

Traffic 652, 594 

Transportation 17, 996, 750 

General expense 2, 872, 133 

Total 22, 8S8, 477 



30 POSTAL EXPKESS. 

Of course, there is no absolute basis on which the saving may be 
ascertained, but it is believed that the figures given are very con- 
servative and that the saving will be much greater than stated. How- 
ever, it is better to understate than to overestimate. Accepting, then, 
the figures arrived at as representing the saving in operating ex- 
penses, to them should be added taxes amounting to $906,519 and 
profits of $11,387,489, making a grand total of $35,182,485. From 
this deduct interest at 2J per cent on $40,000,000 of bonds, or $1,000- 
000, and we have left a clear saving of $34,182,485. 

Because of the fact that there are a great number of " common- 
point " offices at which two or more, frequently seven or eight, com- 
panies are represented, all the equipment acquired would not im- 
mediately be necessary for the operation of the business, but could 
be reserved until the increase which would undoubtedly come through 
reduction in rates demanded that it be put in service. It is a fact 
that in many — in fact, most — of the "common points," about 8,000 
in number, an increase of one-third to one-half in the equipment and 
facilities of any one company would handle the entire business of all 
companies, and in this fact lies the strongest reason why a very con- 
siderable saving can be made in operating expenses. 

Among items of expense which would be entirely eliminated may 
be pointed out the salaries and expenses of the hundreds of clerks in 
auditors' offices who do nothing but pro rate the percentages accru- 
ing to transportation lines for the privilege of conducting an ex- 
press business over them; the salaries and expenses of other hun- 
dreds in the same offices who pro rate the charges between companies 
on waybills originating with one company and terminating with an- 
other — through bills, as they are called. The saving in the duplica- 
tion of salaries and expenses of traffic managers, solicitors, presi- 
dents, treasurers, auditors, and superintendence of all kinds must be 
apparent, and, in fact, the possibilities in this line appear almost 
unlimited. 

The great amount of detail work in the express business as now 
conducted is well known to all who are familiar with the business, 
and through the elimination of a large part of the detail still further 
economies will be effected. 

As an illustration of detail which may be eliminated, take the 
case of a package originating with express company A, destined to 
a point reached only by express company B. Company A waybills 
the package to a junction point with company B. On arrival at the 
junction point the shipment is written up on the regular form of 
delivery, receipted, and delivered to company B, which makes an- 
other waybill from the junction point to destination. On arrival at 
destination it is again written up for delivery. Notice the duplica- 
tion of work, each of the two companies going through practically 
identical processes. 

A system of through cars between large centers of population 
could be run, thus obviating the expense of labor in unloading and 
reloading cars at the terminus of transportation line, known as 
transfer expense. When it is held in mind that under the proposed 
plan it would be possible to forward these cars over any railway 
line or from any depot, the saving effected would be considerable 
when compared with the present conditions, which often require 



POSTAL EXPRESS. 31 

that a car be unloaded and its contents hauled in wagons across the 
city and then reloaded into another car on a different line of road. 
On the branches, and to a large extent on the railway trunks, the 
postal clerk would take the place of the express messenger, a saving 
of several millions. Not only would there be a saving of labor, but 
also in time and in risk of loss of damage in handling. 

On a gross business of approximately $132,500,000 the operating 
expenses show items 19, 33, and 47, amounting to $1,360,076.54, as 
paid for stationery, while the postal svstem on a gross business of 
$208,351,886 shows $338,805.57. An aggregate saving on these items 
of $56l;,810 is predicated, leaving about $800,000 still available for 
expenditure. But with the simplified condition and the possible de- 
vices for eliminating the complex and almost endless accounting, it 
is not unlikely that a million dollars could be saved. 

Take again the item of commissions, amounting to $6,621,952.63. 
This represents payments to railway agents whose connection with 
the subject would be shifted to the Post Office with but a little of 
increased expense. Items 16 and 17, " outside agencies " and " adver- 
tising," might be almost wholly saved. But I will leave the further 
detail of this subject to Appendix F. A statement of comparative 
receipts under both systems now follows : 

Receipts and expenditures of express function under postal express. 

[Based on experience, 1909.] 

Gross revenues $132. 599, 190. 92 

Expenditures : 

Maintenance $742, 651. 38 

Traffic expense 5,080.34 

Transportation expenses 31,276,281.18 

General expense 1, 360, 563. 59 

Railway pay 63,932,126.99 

Interest on bonds 1, 000, 000. 00 

98, 416, 707. 48 

Balance, savings of operation 34,182,493.44 

These savings alone, if applied to the rates in 1909, would have re- 
sulted as follows : 

Cents. 

Actual express rate per average pound 1. 56 

Reduction of rate per average pound .44 

Feasible, resulting rate, average pound 1. 12 

THE RATE DECLENSION IN THE EXPRESS TRAFFIC. 

There are two elements in a practical rate structure which call for 
the first order of attention : 

(a) A rate sufficiently low to permit the article to move (with a 
profit) to its natural market, and yet sufficiently large to fully pay 
the cost of the service. 

(b) The highest feasible simplicity in the rate structure itself. 

A reduction of about one-half in the express rates following the 
possible economies of a single operation will do much to gratify the 
first requirement; but its full realization will have to wait the de- 
velopment of the traffic from rural points and the gradual approach 



32 POSTAL EXPRESS. 

to a readjustment of railway pay. With respect to the second, rate 
simplicity, this is perhaps attainable only under the proposed unifi- 
cation. When this simplicity can be secured with proper regard to 
the first requirement, rates adapted to traffic needs, all is gain. 
But if the rate is made by law and for simplicity's sake alone, and 
substantial differences of service costs, and traffic mobility are over- 
looked, its wisdom is not unlike the false simplicity of some eastern 
laws which impose the same punishment for all offenses. 

The importance of having a simple formula by which, the weight 
of the package being known, the application of a scale to a map 
would readily determine the charge, is obvious. Devices for this 
purpose at once suggest themselves. Each county might be regarded 
as a point, and measurements from that point to like points could 
be made. Each post office, or habitual user of the service, might 
attach to a pivot set in the map, at the point of sending, a scale to 
rotate to any desired point, and, adjoining the point of destination, 
the scale would show the cost, according to the class and the pounds 
in the package without the possible errors of computation. Stamps 
or printed slips attached to the package, stamped with number of 
package and office and date, would show weight, character, insurance, 
and distance of shipment, supplying automatically a record of the 
pounds and pound-mileage for each office, and, as desired, the like 
data for the whole country. All this by the simple expedient of 
printed identification slips or stamps adapted to the different weights 
and distances and arranged in a cabinet as passenger tickets may be 
seen in ticket offices. Under existing circumstances there is no rule 
by which one can determine the cost of shipment short of application 
for quotation of the rate at the express office. 

And with respect to the number of present express rates and their 
complexity the situation is not fundamentally different from that of 
freight rates. An inspection of the division of express rates and 
tariffs in the Interstate Commerce Commission shows eight shelves, 
each approximating 120 feet in length, filled with these express 
tariffs, filed like books in 960 feet of library shelving. If anyone 
would think this a matter of small significance, let him consider the 
complexity in mere numbers alone of the rates for the country, said 
to be over 220,000,000,000, one of which is the right, and all the others 
the wrong, rate for the shipment at hand. 

THE SQUARE-ROOT FORMULA OF RATE DECLENSION. 

One of the most interesting discoveries in the history of railway 
economics was made by T. M. E. Talcott, of Eichmond, Va., railway 
engineer of about two generations' experience, who has written a 
modest but very useful work on " Transportation by Eail." 

In an investigation into transportation matters by the Industrial 
Commission, in 1900, he stated that he was called upon to make local 
rates for a new line of railway. Being free from the complication 
of competition as to such rates, he was able to arrive at a satisfac- 
tory charge per 100 pounds to the first station, about 25 miles dis- 
tant; but as to the stations farther on and greater distances, what 
should the rates be? Obviously, they should not increase in pro- 
portion to the distance, for the element of terminal service would 



POSTAL EXPRESS. 33 

not increase. At what rate of increase, then, should the rates for 
lengthening distances be computed? 

His conclusion was that in a rough way the rate would increase, 
not in proportion to the distance but in proportion to the square root 
of the added distance. Thus, if the proper rate for 25 miles were 10 
cents, the rate for 100 miles would be 20 cents — the square root of 25 
being 5, and of 100, 10. Popularly expressed, the rate would double 
as the distance quadrupled. On this principle he formulated a table 
for the division of joint rates among participating connecting car- 
riers, known as Talcott's Table for Division of Joint Rates. He 
states that in several court proceedings, as auditor, he adopted this 
formula for division of receipts, and his reports were confirmed by 
the courts. I tested this rule in the largest way which seemed pos- 
sible by taking the long and short hauls for local freight, with their 
corresponding charges on 42 railway systems. The test showed that 
while none of the particular rates coincided with the formula, yet 
the average of all were as — 

Formula rate for long haul $1. 27T4 

Actual rate for long haul 1. 2957 

The actual short average haul was T2.5 miles, and the actual com- 
bined charge of the six classes 49.19 cents. The average long haul 
was 451 miles, and the actual combined charge for the six classes 
$1.29, as stated. The same test, applied to nine representative rates 
for the first and sixth classes, and for nine different journeys rang- 
ing from 36 miles up to 1,156 miles, shows that, without reference to 
whether the rates are local or competitive, the formula holds good 
up to 900 miles. Even at 1,156 miles the actual rates exceed the 
formula by a little more than 10 per cent. 

It must not be concluded from the manner in which the American 
freight, or the German and Austrian, or American express rates, 
approach to or fall below what is here denominated the " square-root 
curve," that any of the rate makers acted on the formula, or even had 
it in mind. The freight rates of the railways referred to would 
rather indicate that the rate makers were aiming at a target the 
exterior outlines of which could be dimly seen, but the center point 
of which was not visible; and while the individual rates usually 
approximated, they did not coincide exactly with the Talcott scale. 
I think, however, that a system of express rate formulated on this 
principle up to 900 miles, while giving mobility to traffic covering 
long distances, would prove practical to cover the relative cost of the 
service. 

For the purpose of adjusting their parcel charges to market mo- 
bility and to the cost of service, Germany and Austria established 
the " zone " idea for parcels weighing 13 to 110 pounds. The rates 
on a 13-pound package are here given, with the mileage, and a 
column is added giving the square root of each distance and what 
the charges would be in the square-root terms of the rates for the 
shortest distance if the rates were made on the Talcott formula. 

S. Doc. 379, 62-2 3 



34 



POSTAL. EXPKESS. 



German and Austrian parcels rates for different distances on 13-pound parcels, 
and showing rates for such distances, under the square-root formula. 



Weights. 


Miles. 


Square 
root. 


German 

rate in 

pfennigs. 


Square- 
root rate. 


Austrian 
rate in 
hellers. 


Square- 
root rate. 


6 kilograms (13 pounds) 


46.1 

92.2 

230.5 

461.0 

691.0 


6.80 

9.60 

15.17 

21.47 

26.29 


30 
35 
45 
55 
65 


30.00 
43.33 
66.89 
94.68 
118.30 


36 
42 
54 
66 

78 


36.00 

48.28 

76.30 

1. 07. 94 

1. 32. 23 


Do 


Do 


Do 


Do 










230 


353. 20 


276 


4.00.75 









The German pfennig (0.238 cent) and the Austrian heller 
(0.203 cent) are each a little more than two-tenths of a cent, and are 
each the hundredth of a mark and a crown, respectively. 

The next step will be to observe whether and to what extent 
American express rates follow this curve of declension. There is 
added to this study Appendix E by the Interstate Commerce Com- 
mission, showing actual merchandise rates between 10 different points 
for distances of from 36 miles to 3,600 miles on shipments of from 
5 pounds up to 100. 

The table following represents the average of all the rates given in 
Appendix E; and gives in parallel columns tentative express postal 
rates computed on the Talcott formula up to 900 miles, where the 
declension stops, and later becomes horizontal, and thence increases 
arithmetically with the journey. 

In the following table an average express haul of 196 miles is 
assumed, the average freight haul being 253 miles, about 30 per cent 
greater. In nearly all instances abroad the express haul slightly 
exceeds the freight haul; and in the absence of exact statistics it is 
considered that an assumption of 196 miles here is not above the 
mark. The express rates proper are averages of actual rates as 
stated and the "tentative express rates" represent special loadings 
for " collect and delivery " and " general expense," and for transpor- 
tation the average express railway pay of 0.74 cent per pound as 
per the experience of 1909. 



POSTAL EXPKESS. 



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36 POSTAL EXPRESS. 

In the above table the prevailing transportation pay, 0.74 cents 
per pound, is divided by 14, to obtain the cost per transportation 
distance unit under the Talcott formula, giving the product of 
0.053 — which is multiplied by the square root of the miles of the 
journeys up to 905 miles — producing thus the transportation loading 
per pound. The pound rate per journey is multiplied by the number 
of pounds in the parcel to secure the final transportation loading 
for each rate, and the other loadings then added to make the tenta- 
tive postal-express rate. In proportion as the actual express haul 
may prove longer or shorter than the assumed haul of 196 miles, 
these tentative rates should be increased or diminished under the 
formula, which is limited to distances within 905 miles. For longer 
distances the transportation loading is at the rate of 3.55 cents per 
ton-mile. The mingled " merchandise " and " commodity," i. e., the 
average express-railway pay on all kinds of express classes and 
rates, for distances beyond 905 miles indicates this 3.55 cents per 
ton-mile as constant, although a preceding table dealing only with 
merchandise rates indicates it as 4 cents. The table above given con- 
cerns merchandise rates. Even lower rates would have to be con- 
sidered for special kinds of traffic. 

EXPRESS-RAILWAY PAY, THE AMOUNT. 

Some little textual comment on the last comparative table may be 
offered. Its feasibility, to begin with, depends solely on the suffi- 
ciency of the loadings for "collect and delivery" (previously dis- 
cussed) and the loading for general expense. The transportation 
loading, i. e., the railway pay, is not different in amount from that 
now paid the railways, according to the experience of 1909. The 
method, simplified in the interest of the railroads and the traffic, as 
well as economical practice, is different ; but the railways are inter- 
ested in seeing that the amount of their revenues are not impaired, 
and in not preserving costly methods of computing it. This may be 
an appropriate place to emphasize the importance of not thought- 
lessly impairing railway revenues, or even of rendering them seri- 
ously uncertain. The prosperity of the country largely depends upon 
the degree of assurance with which the investing public may con- 
template the railway revenue of the future. From this standpoint 
the question is not so much whether a particular service is over- 
burdened by railway charges as it is, Do the final results of all the 
railway charges justify the investors' confidence? The investigation 
may show, the experience elsewhere certainly indicates, that the 
railway portion of the present express charge is about twice what it 
should be. But it does not equally appear that, at the same time, the 
railways are securing so much excess net revenue on their entire 
operations. If they are getting too much from the express traffic 
and yet are not getting too much from the whole traffic, then the 
express excess pay must mean an equal undercharge by the railways 
on some other traffic. A fair regard to the rights of the railway in- 
vestors dictates, accordingly, that when the alleged excess express 
railway pay is adjusted down, the equilibrium of net railway revenues 
be maintained by adjusting the insufficient charges up to correspond. 
This is unquestionably necessary, unless it can be known with cer- 
tainty, that the reduction of the express-railway pay will operate, 



POSTAL EXPRESS. 37 

through cheapened express rates, to correspondingly increase the 
business and preserve the gross return intact. Only actual experi- 
ment can demonstrate the argument to the railway investor. Accord- 
ingly, the effort to adjust railway pay for this service should be 
conditioned on results, not deduction, however convincing, to third 
parties. 

And yet, if the postal management, by its expected capacity to re- 
duce the rates and enlarge the traffic by articulation with rural 
sources, shall actually double the business for the railway, and it be 
found, as suspected, that express-railway pay is double normal, will 
not the conditions be then present for an adjustment equally fair to 
the investor and the traffic ? The ratio of the railway revenue from 
the express service as compared with the freight is now 8 to 1 (7.8 
to 1), i. e., $14.82 a ton for express-railway pay to $1.90 per ton for 
freight. The average for the whole service in other countries report- 
ing, excluding only collect and delivery, is 5.23 to 1, or $4.64 per 
express ton and $0.84 per ton of freight. Plainly, if unrighteous ex- 
press rates have cut the potential traffic in two, the express company 

is not the only cause concerned in the result. 

\ 

POSTAL EXPRESS RAILWAY PAY. 

In the treatment later of the subject of secondary, or fast-freight 
express, methods of determining the railway pay are presented and 
discussed. But they are not deemed applicable during the life of 
the express railway contracts. 

The basis of the contracts of the railways with the express com- 
panies for the railway share is a percentage of the charges per pack- 
age made by the express companies; a summary of the contract is 
added to this study as an appendix. When the package traverses 
more than one line, compensation has to be made to the different rail- 
way companies for such packages, and the percentage going to each 
railway is computed in one of two ways — the mile prorate, in accord- 
ance with the length of the participating railways, or the rate pro- 
rate, giving each railway compensation as if there were as many 
shipments as participating railways; or both methods may be ap- 
plicable to a shipment over different lines. 

The computation of railway compensation is monthly, and each 
bill of lading must be consulted and the percentage computed for 
this purpose. The labor of accounting for packages on one-line traffic 
is costly in the extreme, but when it is multiplied by two or more 
railways and two or more express lines the labor becomes stupendous. 
It is proposed to eliminate this waste of accounting, to realize a sav- 
ing the amount of which can hardly be stated in smaller terms than 
its total cost. Instead of computing the amount due each railway 
from each piece, the bill provides for weighing the express matter 
at stated times to determine its gross and average weight as a basis 
of payment to the railway. Let it be said that on a given line of 
railway the gross weight were found to be 50,000 tons and the gross 
railway revenue from it were $750,000, or $221 per mile. This weight 
and compensation would give the operative rate per pound under the 
respective contracts and a basis for future payments. This change in 
the method would be important for another reason outside of the 
saving, which would make it imperative that the railway and the 



38 POSTAL EXPRESS. 

department adopt it. By it, even under the proposed reduced rates, 
the railway would be secured a fixed compensation per pound — that 
is, an average rate for the railway of 0.74 cent per pound, giving 
the same gross revenue on the weight of traffic that they now receive. 

But if the rates were reduced and the compensation were com- 
puted according to the practice under the contracts, they would re- 
ceive only 47.53 per cent of such reduced charges. Thus both par- 
ties would have controlling financial motives to employ the gross 
weight rather than the piece method; for if the department urged 
the old method it would have the terrific accounting bill to pay, 
while the railways would have their compensation reduced by from 
$4 to $5 a ton on the basis of an unchanged percentage of rates re- 
duced from one- quarter to one-third or more. As to a matter that 
appeals so strongly to the financial interests of both parties, and 
involves an obvious public service, there can be no question that the 
method provided by the bill would prove acceptable. The railways 
themselves have come to show a reasonable attitude toward the 
public, and that part of the public which gives attention to transpor- 
tation matters is not willing that the railways should be wronged. 

During the life of these railway-express contracts — and they run 
for various periods — their terms, when thus acquired by the Govern- 
ment, would be scrupulously observed by both parties, except as 
changed by mutual consent. That under the changed order of 
things they would be so changed for mutual advantage is certain. 
Whether before or after their expiration one of the changes not 
unlikely would be from the weight basis of payment to the car- 
space and mileage standard, with differential charges for less than 
full loads, on the principle applied to carload and less than carload 
freight. This would protect the railways on the lines both of light 
and heavy traffic and give the postal department practical liberty to 
adapt its rates to moving the largest economically feasible amount 
of traffic. However this may be, after the contracts expire the Post- 
master General is empowered to make new ones, and to guard against 
serious error appeals for all parties from these contracts are pro- 
vided to the Interstate Commerce Commission and from it to the 
Court of Commerce. A just conclusion is always to be desired, and 
under the circumstances an intelligent department and railway ad- 
ministration would hardly fail to see that the promotion of the 
traffic and the broadest extension of the public service would be the 
surest guaranties of profit to all concerned. 

MISCELLANEOUS REMARKS. 

I can only glide over the important minutiae of the subject in its 
relations to the development to become necessary in the rural free- 
delivery wagon as the traffic enlarges. The main point is that the 
service structure is there and already paid for whether the wagons 
go empty or full. The practical and economical motor is even now 
in sight to perform a greatly increased service by lengthening the 
feasible day's route. In this connection it is suggested that double 
service might be obtained and route service economically justified in 
many cases by an every-other-day, rather than a daily, service. And 
a twice-a-week service would prove of very great advantage and be 
economically practicable where otherwise none could be sustained. 



POSTAL EXPRESS. 



39 



The administration of the service ought to have the power necessary 
to fit the service to the local conditions and to take the actions dic- 
tated by the exigencies of the revenues and the requirements of the 
traffic. Where generalization is practicable the administrative func- 
tion would likely generalize with as much wisdom as Congress ; and 
if the former made a mistake, it could be corrected without waiting 
for irreparable loss to the Treasury or the traffic. 

With respect to the rural service, the bill gives the administration 
the power to grade the weight limit to the growing measure of its 
facilities for handling the traffic, the limit advancing to 100 pounds 
as the equipment and traffic may permit. The practice now is to let 
the carrier own and care for his motive power as the best means for 
conserving it, and this practice may prove equally desirable when 
mechanical power replaces the horse. With the City Delivery Service 
and the large motor truck a different disposition may prove expedi- 
ent, and until the motor reaches a more perfected state its use by 
contract may be justified. Administrative experts may work out all 
such regulations with the painstaking attention to details essential 
for the best results. 

In all these matters the bill gives the management the right to 
move slowly and the power to develop the opportunities of the 
traffic as operative efficiency permits. 

Naturally, there are minor features of the express business as now 
conducted and as proposed that have escaped discussion in this 
study. One of these is the money-order business. The postal sys- 
tem is so obviously fitted to discharge this work that further com- 
ment is not thought necessary, except to say that the bill specifically 
covers this feature. 

It may, too, be suggested that no allowance has been made in the 
chapter on savings for the increased cost of placing the express em- 
ployees on the postal plane of hours and wages. This very sub- 
stantial feature has not been overlooked. It is considered that the 
low rates and the added rural traffic would double the business in a 
year and from its increment much more than enough surplus income 
would flow to cover such items. What is actually expected is that 
the traffic in a few years would increase to about 16,000,000 tons per 
annum, including the country-to-town traffic now nonexistent. 

Other features of the general subject are purposely omitted as 
tending to excite feeling only. It is thought that the controlling 
elements have been dealt with and that the data necessary to form 
judgment upon the merits of the passenger express proposition have 
been presented. 

A SYSTEM OF FAST-FREIGHT EXPRESS. 



The institution in Germany. 

Classification for, in America. 

The necessary classes. 

Distance rates and the rate declen- 
sion. 

Representative railway rates for va- 
rious distances. 

The small shipment and transporta- 
tion accounting. 

Necessity for eliminating transporta- 
tion accounting. 



Fast freight supplemented by passen- 
ger trains on branches. 

Loadings of rates for passenger 
service. 

Expository rate table, first and sixth 
classes, and comparison with ex- 
press rates. 

Railway pay for fast-freight service. 

Rate-making body and administrative 
regulations. 



40 POSTAL EXPRESS. 

GENERAL ELEMENTS, POSTAL EXPRESS. 

Zones for postal and fast-freight ex- Advantages of — Continued. 

press. The high cost of living. 

Postal working economy and efficiency. Resume of advantages. 

Unification of postal system, with ex- The opposition, 

press plants. Public opinion. 

Advantages of: Aphoristic statesmen. 

An agricultural post. Conclusion. 

Transportation direct to consum- Appendices, 
ers. 

A SYSTEM OF FAST-FREIGHT EXPRESS. 

Perhaps in a major number of instances a shipment now goes by 
passenger express to obtain expedition and security of transit. How- 
ever, a very large proportion goes by express because the minimum 
express and railway rates are the same for short distances and light 
packages, while the express grants additional facilities. The scien- 
tific rate maker has an axiom that rates should be — 

(a) Sufficiently low to enable the shipment to move to its natural 
market with a profit, and yet 

(&) Sufficiently high to pay all the out-of-pocket expenses of the 
services, and as large a share of the fixed charges as the fiscal exi- 
gencies of the carrier may require. 

Our railways have gone a long way to gratify the first element — 
mobility — with respect to the larger articles of commerce, but their 
practices have, in effect, condemned the small, low-priced consign- 
ment to commercial immobility. The Germans have worked out 
the possibilities of transportation in this respect. They have not 
only the parcel post, available to 110 pounds, at a rate which works 
out at $13.67 per ton on 13-pound packages for 225 miles ; but have 
also the passenger express at rates four times the freight rate, and 
what is here called the " fast freight " commanding just twice the 
freight rate. The latter service makes the rate concession necessary 
to enable any package, small and cheap, or larger shipment requiring 
speed, to move to the markets. 

I come now to discuss this method of fast transport, which obtains 
ki Prussia and, perhaps, in Austria. It is a mixed fast-freight serv- 
ice supplemented by passenger train on the branches. When the 
place of consignment or destination does not coincide with a fast- 
freight stopping place, the shipment is expedited either to such 
point or from such point by the accommodation passenger train. 
The rate for this service is twice the freight rate, according to its 
class, while the rate for passenger-train express is four times such 
freight rate. The conditions obtain for the adoption of this fast- 
freight express in the United States. On all our trunk lines fast- 
freight service exists, with an average speed of from 20 to 25 miles 
per hour. Speaking generally it is only on the branches that this 
fast service is wanting, where, of course, the accommodation passen- 
ger train may always be found. 

The system works quite simply in Prussia. There the class traffic 
by which the rates are determined travels on a rate formula liter- 
ally comprised in a single page, and by which, the weight and dis- 
tance of destination of the shipment being stated, the rate can be 
computed by the application of the formula. 



POSTAL. EXPRESS. 41 

This simplicity of rates does not obtain in the United States. As 
we have seen, its existence is necessary to a feasible rate for small 
consignments. 

In its absence the parcel rate would have to be picked out from 
the 800,000,000,000 place-to-place rates (Stickney), an act (off 
the beaten lines of traffic) so expensive in its character, saying noth- 
ing of its fallibility, as to eat up the fiscal loading which the small 
article might bear and still move. Moreover, with a feasible rate 
for the diminutive consignment, the whole character of rate finding 
would likely change. Now an immense proportion is on beaten lines, 
familiar to the freight agent, and in quantities large enough to sus- 
tain the cost of the " rare hunt " when otherwise. Accordingly, fast- 
freight express, as adopted here, in the interest of a feasible rate and 
the operating economy of the carrying railway, would have to have 
a rate formula at least as simple as the Prussian. 

Can it be secured ? 

The indifferent railway manager or publicist may quickly say no. 

I believe it can be, and, at least, this committee will be glad to hear 
the subject discussed. 

THE CLASSIFICATION. 

Obviously there would need be but one classification. There are 
now three main classifications for the freight traffic — the official, the 
western, and the southern, with their varying assignment to classes 
of the articles of commerce. For many years there has been an ef- 
fort among the railways, in their own interest, to secure such a uni- 
form classification — disappointed on one occasion, a text writer says, 
by the dissatisfaction of a single railway company. There is a like 
movement now which practically assures success, while the Inter- 
state Commerce Commission has been vested with power to declare 
one, something it will probably do if the railways fail in their initia- 
tive. If, upon the passage of the legislation proposed in this study, 
the work has not been already accomplished by one or the other, the 
commission might, without endangering appreciably the finances of 
any railway, " cut the Gordian knot " as to the differences— i. e., exer- 
cise its power of classification as to this kind of express. 

THE CLASSES. 

In ordinary express, most articles being treated as of the first 
class or higher, we were not required to consider a question now 
before us. It is, How many classes for rate purposes should be 
adopted? Simplicity makes a very natural, if uninstructed, appeal 
for one class. But I think the conditions render such a treatment 
either insufficient or impracticable. To adopt rates exclusively based 
on the rail charge for carrying the sixth-class freight traffic would 
be unjust to the railways, and result in largely diverting the higher 
classes of traffic from the railways to the secondary express. To 
adopt rates based wholly on the first or higher classes would be, in 
effect, to deny admission of lower class shipments to the secondary 
express service. The conclusion reached is that the German method 
should be followed and class rates made, recognizing all classes, but 
excluding commodities. This would require the postal officials on 
receipt of the shipment to ascertain the class to which it belonged in 
the uniform classification, not an expensive task. The article would 
have in a general way the same adaptation of the rate to the ability 



42 



POSTAL EXPKESS. 



of the article to bear it, and move with a profit to its natural market, 
which freight rates possess. 

DISTANCE BATES AND DECLENSION OF RATES. 

Reference has already been made to the Talcott formula with ref- 
erence to freight rates. Broadly stated, it means that the cost of 
freight carriage tends to increase, not in arithmetical proportion to 
the increase of mileage, but in proportion to the increase of the square 
root of the added mileage. In an earlier part of the study attention 
has been called to the instinctive recognition of this truth by the 
rate makers in the express traffic, as well as in the freight. There is 
now given a table comprising the average of nine representative rates 
for the first and sixth classes, and for distances running from 36 to 
900 miles, covering all sections of the United States. It shows that, 
substantially, the Talcott law holds good for both classes (and doubt- 
less for all classes) Up to 900 miles. Data is wanting for greater 
distances, but it is probable that the rate curve from 900 miles up 
tends to decline at a lessening rate. For the purposes of this discus- 
sion it is treated as flat, i. e., as nondeclining, after 900 miles. 

Table of first and sixth class freight rates, based on averages of nine actual rates 
for each distance, and corresponding excess-baggage rates, compared with 
rates by the Talcott formula. 

[Per 100 pounds.] 





Square 
root. 


Charge for 
baggage 
excess. 


First class. 


Sixth class. 


Distance. 


Actual rate. 


Talcott 
formula. 


Actual rate. 


Talcott 
formula. 


Miles. 
25 


5 

6 

10 
14 
18 
22 
26 
30 
32 
34 


$0. 1042 










36 


$0. 205 

.302 

.431 

.56 

.725 

.969 

1.102 

1.297 

1.357 


$0. 205 

.341 

.477 

.613 

.75 

.886 

1.023 

1.091 

1.169 


$0.09 
.115 
.163 
.217 
.28 
.369 
.418 
.547 
.577 


$0.09 


100 


.4167 
.8167 

1.35 

2. 0167 

2. 8167 

3.75 


.15 


196 


.18 


324 


.27 


484 


.33 


676 


.39 


900 


.45 


1,024 


.48 


1,156 




.51 









As a matter of fact the sum total of the formula rates for the two 
classes slightly exceed the sum total of the actual rates up to 1,024 
miles, so that the Talcott law may be said to hold good on the 
whole for that distance. There is added, in the form of an appendix, 
the table of actual rates upon which this table is based. 

The above table is given with a view to ascertain what zones are 
practicable in harmony with existing railway freight rates. It is 
beyond argument that in a country like ours a considerable number 
of zones would be necessary. My own impression is that there 
should be about 40, both for the purpose of correlating express 
rates with the freight, as well as adapting the rate measurably to 
the service involved. This condition would not involve us in any 
complexity, for what can be made simple may be so regarded 
ab initio. The sizes of the zones being determined, as hitherto sug- 
gested, a scale, rotating on a pivot, fixed at the point of origin, the 
sending county or city, being turned to the point of destination, 
would give the distance charge per class and per weight (from 10 
pounds up to 100) without the possible errors of computation. A 



POSTAL EXPRESS. 43 

stamp tag in quadruplicate, with class, weight, destination, con- 
signee, number of zone, consignor, and other indicia, is taken from 
a cabinet and affixed. One of the copies goes to the consignor, 
another to the consignee, another to the railway, etc., as by regula- 
tion may be found necessary. The traffic for each office, according 
to weights, classes, zones, or distances for each office, may be deter- 
mined by its stamp account with the department, month by month; 
as also may its receipts traffic by the surrendered consignee copies. 
With the hamper of packages delivered to the railway the depart- 
ment might also deliver the copies with blanks for operating nota- 
tion of receipt and delivery. In this way the transit of the article, 
while protected as is freight by appropriate tracing devices, would 
be completely divorced from the " transportation accounting " of 
railway practice. What this means in trouble and expense for the 
railway, and in corresponding costliness of rate to the diminutive 
consignment is perhaps the most important circumstances of the dis- 
cussion, and has been treated elsewhere in detail. 

The above elaborate statement is essential to an understanding of 
the first difficulty in formulating a feasible rate for small packages, 
for the elements of such are not merely (a) that it be high enough 
to produce sufficient revenue to pay all the cost of the service, but 
also (b) that the rate be low enough to enable the article to move 
with a profit to its natural market. Since in both ordinary and sec- 
ondary express we shall substantially always be dealing below the 
100-pound line the " transportation accounting " burden will be 
present if either be conducted by private corporations. The practices 
must be kept up by them in their individual relations to the package 
and each other, and they can not dispense with this accounting. Ac- 
cordingly under present railway and express conditions rates pro- 
portioned to the diminished weight of the package can not reason- 
ably be asked of the railway or express company, while rates based 
on the necessary minimums of the railway and express company 
operate to prohibit, perhaps, more than half of such shipments. 
The act of moving the small package grows relatively less with its 
weight. The complex series of acts looking to its fiscal relation to 
the company grow relatively egregious as the weight of the ship- 
ment and the journey on any weight approaches the minimum. The 
latter is then the problem to be solved if we are to secure a feasible 
package rate. 

To solve it completely the shipment must be divorced completely 
from the " transportation-accounting " practices of the transporta- 
tion company. It can be stated that the only instance in which this 
divorce is now accomplished is in the case of packages carried in the 
mail, of which no record is kept and no accounting takes place. The 
railways trust the Government to pay them for carrying those pack- 
ages upon bases of aggregate weights and the volumes of traffic ; and 
while there is some complaint both from the public and the railways 
that these bases are unjust, neither would think of resorting to the 
piece- accounting method of the express company for computing the 
service rendered. Such a method would weigh down the whole Eail- 
way Mail Service with accounting expense. 

TENTATIVE RATES FOR FAST-FREIGHT EXPRESS, FIRST AND SECOND CLASSES. 

The rates for secondary express would have to carry loadings for 
the following services: (a) Collection and delivery urban and rural, 



44 POSTAL EXPKESS. 

(b) post-office general expense, (c) Dassenger-train carriage (whether 
postal car or baggage car), (d) arithmetical proportion of average 
freight charge. The two former (a) and (&) will be alike for all 
distances, but (a) will be graduated to the weight of the package, 
while (d) will have to answer to the length of the haul. 

PASSENGER SERVICE ON BEANCHES. 

Without this service there would be no satisfactory expedition of 
movement in many cases where shipping or destination point did 
not coincide with the stopping places of the fast- freight trains, and 
upon the branches. It is therefore regarded as an indispensable 
service. How should the railway be paid for it? It is suggested 
that the railway rate and facilities for the carriage of the mails be 
utilized. This rate is uniform for the whole United States, and its 
method of computation and payment already in practice. The as- 
sumption is that in this mixed passenger and fast freight service 
the passenger train would, on the average, be necessary for 25 miles 
of the journey. At 8 cents a ton-mile the package would have to 
be loaded at the rate of about 10 cents per hundred pounds to pay the 
railway for this service for a journey of 25 miles. 

It should be noted in this connection that an immense portion of 
the traffic would travel between the cities on the trunk lines and re- 
quire no passenger service at all. Nearly all the balance of the traffic 
would travel either from the city to points on the branches or vice 
versa, and require the service at but one end of the journey. Only 
rarely, it seems, would the branch service be required at both ends of 
the journey ; and so it is considered that an average of 25 miles, for all 
shipments, quite fully states the degree to which the rate should be 
charged for this service. 

FREIGHT-BATE LOADINGS. 

The loadings (<z), (&), and (c) having been discussed, there re- 
mains the loading for transportation of the article by fast freight. 
This loading for both the first and second classes covered by the 
table, next to be introduced, consists of averages of these rates as 
given in the first table of this division of the study. It is a short- 
distance rate of 20.5 cents for the haul of 36 miles running to $1.10 
for 900 miles on first class, and 9 cents and 42 cents, respectively, for 
the sixth class, and like distances. It is to be regretted that the rate 
could not be made simply twice the freight rate, as in Germany, be- 
cause in that case we should not be in danger of making a rate so 
low as to divert traffic from the railway to secondary express in those 
instances where the latter rate might be lower than the railway rate. 
Protective provisions are made for these conditions, however. Of 
course, there should not be a low Government rate in a given direc- 
tion and a higher rate in another; and so the rates should have to 
be uniform for given weights and distances. The railways do not 
object to this, apparently, in the case of the express companies, whose 
rates are practically the same for differing directions throughout the 
country. To protect the railway from diversion of its traffic to the 
express in those instances where its rates may be higher than those 
of the Government it is proposed that the railway shall have the 
right to collect from the consignee the difference between its rate 



POSTAL, EXPRESS. 



45 



(ignoring the minimum rule) and the transportation loading for 
the fast-freight service. Thus, if its rate on a 10-pound package 
(one- tenth of its hundredweight rate) were 30 cents, and the sec- 
ondary express loading were but 20 cents the railway should have 
a right to collect from the consignee, through the postal agencies, 
this excess of 10 cents. It is not thought this condition would be 
often encountered, and where it is the railway should be made to do 
duty as its own sentinel, since it is in possession of all the machinery 
for discovering the anomalies in such cases. After all this discussion 
of loadings for the secondary express rates, that is of "collect and 
delivery," " general expense," " passenger-train service," " fast-freight 
service," I undertake, in a purely expository way, to present a table 
of fast-freight express rates based on the loadings and data pre- 
sented. 



Expository fast-freight express rates, first and sixth classes, and actual express 

rates. 



Distance. 


Classes. 


10 
pounds. 


20 
pounds. 


30 
pounds. 


40 
pounds. 


50 
pounds. 


Square 
root. 


Miles. 
25 




$0.32 
.12 
.12 
.42 
.14 
.12 
.51 
.16 
.13 
.63 
.18 
.13 
.79 
.19 
.14 
.92 
.21 
.15 
.97 
.22 
.16 
1.18 
.28 
.17 
1.25 
.31 
.19 

( 2 ) 
.33 
.21 

( s ) 
.37 
.21 
1.40 
.42 
.23 

( 2 ) 
.44 
.24 
1.54 
.50 
.26 

( 2 ) 
.52 
.27 
1.65 
.55 
.28 


$0.32 
.15 
.15 
.46 
.21 
.17 
.60 
.23 
.18 
.79 
.26 
.19 

1.01 
.30 
.21 

1.24 
.34 
.22 

1.30 
.37 
.23 

1.72 
.49 
.27 

1.90 
.54 
.30 
( 2 ) 
.59 
.32 

( 2 ) 
.66 
.35 
2.60 
.76 
.38 

( 2 ) 
.81 
.40 
2.89 
.92 
.44 

( 2 ) 

.96 

.46 

3.00 

1.03 

.54 


$0.41 
.16 
.16 
.56 
.25 
.20 
.73 
.29 
.21 
.91 
.33 
.23 

1.23 
.38 
.25 

1.54 
.46 
.27 

1.61 
.49 
.29 

2.40 
.67 
.35 

2.63 
.75 
.39 

( 2 ) 
.82 
.41 

( 2 ) 

.93 

.46 
3.87 
1.08 

.51 
( 2 ) 
1.15 

.55 
4.28 
1.32 

.60 

( 2 ) 
1.37 

.64 
4.47 
1.48 

.66 


$0.44 
.19 
.19 
.64 
.31 
.23 
.82 
.36 
.25 
.99 
.41 
.27 

1.35 
.48 
.30 

1.83 
.58 
.34 

1.90 
.63 
.36 

3.02 
.87 
.43 

3.35 
.97 
.49 
( 2 ) 

1.07 
.53 

( 2 ) 
1.22 

.58 
4.47 
1.41 

.66 

( 2 ) 
1.51 

.69 
5.70 
1.73 

.77 

( 2 ) 
1.80 

.82 
5.95 
1.95 

.85 


$0.48 
.21 
.21 
.74 
.36 
.27 
.95 
.43 
.29 

1.05 
.49 
.32 

1.40 
.58 
.35 

1.86 
.70 
.40 

1.99 
.76 
.42 

3.25 

1.07 
.52 

3.74 

1.19 
.59 
( 2 ) 

1.31 
.58 
( 2 ) 

1.50 
.70 

5.58 

1.74 
.80 

( 2 ) 
1.86 

.84 
6.88 
2.14 

.94 

( 2 ) 
2.23 
1.00 
7.44 
2.41 
1.04 


5 




First 






Sixth 




100 


Express 


10 




First 






Sixth 




196 


Express 


14 




First 






Sixth 




324 


Express 


18 




First 






Sixth 




484 


Express 


22 




First 






Sixth 




676 


Express 


26 




First 






Sixth 




900.. 


Express 


30 




First 






Sixth 




1,2961 


Express 1 


36 


First 






Sixth '. 




1,600 


Express 


40 


First 






Sixth 




1,800 


Express 




First 






Sixth 




2,100 


Express 




First 






Sixth 




2,500... 


Express 


50 




First 






Sixth 




2,700 


Express 




First 






Sixth 




3,136 


Express 


56 




First 






Sixth 




3,300 


Express 






First 






Sixth 




3,600 


Express 


60 




First 






Sixth 






Loadings to above weights: 
Passenger train 






.01 
.05 
.05 


.02 
.07 
.05 


.03 
.08 
.05 


.04 
.09 
.05 


.05 
.10 
.05 






Collect and delivery 

General expense 












.11 


.14 


.16 


.18 


.20 





46 POSTAL EXPRESS. 

Expository fast-freight express rates, first and sixth classes, etc. — Continued. 



Distance. 



Classes. 



60 


70 


80 


90 


100 


pounds. 


pounds. 


pounds. 


pounds. 


pounds. 


$0.53 


$0.53 


$0.54 


$0.54 


$0.54 


.23 


.25 


.27 


.29 


.31 


.23 


.25 


.27 


.29 


.31 


.82 


.89 


.89 


.89 


.89 


.41 


.46 


.51 


.56 


.61 


.30 


.33 


.36 


.39 


.42- 


1.08 


1.22 


1.28 


1.30 


1.30 


.49 


.55 


.61 


.68 


.74 


.33 


.36 


.40 


.43 


.47 


1.23 


1.43 


1.58 


1.80 


1.77 


.57 


.64 


.72 


.79 


.87 


.36 


.40 


.44 


.48 


.52 


1.68 


1.96 


2.24 


2.52 


2.78 


.67 


.76 


.85 


.95 


1.04 


.40 


.45 


.47 


.54 


.59 


2.24 


2.61 


2.98 


3.35 


3.70 


.81 


.93 


1.05 


1.16 


1.28 


.45 


.51 


.57 


.63 


.68 


2.36 


2.75 


3.14 


3.54 


3.93 


.90 


1.02 


1.15 


1.28 


1.41 


.48 


.54 


.61 


.67 


.73 


3.69 


4.53 


5.17 


5.82 


6.46 


1.26 


1.45 


1.64 


1.83 


2.02 


.60 


.68 


.76 


.84 


.92 


4.33 


5.18 


5.90 


6.66 


7.40 


1.40 


1.62 


1.83 


2.05 


2.26 


.69 


.78 


.87 


.97 


1.06 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


1.55 


1.79 


2.03 


2.27 


2.51 


.73 


.84 


.86 


1.05 


1.15 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


1.77 


2.05 


2.33 


2.60 


2.88 


.82 


.94 


1.05 


1.17 


1.29 


6.65 


7.76 


8.87 


9.98 


11.08 


2.04 


2.39 


2.72 


3.04 


3.37 


.93 


1.07 


1.21 


1.34 


1.48 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


2.21 


2.56 


2.91 


3.26 


3.61 


.99 


1.13 


1.29 


1.43 


1.57 


8.71 


9.58 


10.95 


12.32 


13.69 


2.54 


2.95 


3.35 


3.76 


4.16 


1.11 


1.27 


1.44 


1.60 


1.77 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


( 2 ) 


2.65 


3.07 


3.49 


3.92 


4.34 


1.15 


1.33 


1.50 


1.68 


1.85 


8.92 


10.44 


11.90 


13.39 


14.87 


2.87 


3.33 


3.79 


4.25 


4.71 


1.24 


1.43 


1.61 


1.80 


1.99 


.06 


.07 


.08 


.09 


.10 


.11 


.12 


.13 


.14 


.15 


.05 


.05 


.05 


.05 


.05 


.22 


.24 


.26 


.28 


.30 



Square 
root. 



Miles 
25 

100 

196 

324 

484 

676 

900 

1,296 

1,600 

1,800 

2,100 

2,500 

2,700 

3,136 

3,300 

3,600 



Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First....: 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Express 

First 

Sixth 

Loadings to above weights 

Passenger train 

Collect and delivery. . . 
General expense 



5 

10 
14 
18 
22 
26 
30 
36 
40 



50 



56 



60 



i Rates for distances above 900 miles are calculated in arithmetical proportions of the 900-mile rates for 
first and second classes. 
* Figures not obtained. 

The expository rates above given for first class start at about 
one-half the express average rates, and decrease gradually until at 
3,600 miles they are about one-third the express charge. 

The rates suggested under sixth class begin at about one-half also, 
but decrease more rapidly. At 3,600 miles they are nearly one-eighth 
of the average express rate. 

Note. — The distance up to 100 miles may be accomplished about as cheaply 
at postal rates for first class as by the combination of fast freight (75 miles) 
and postal (25 miles) service. Thus 100 pounds, at postal rates for 100 miles, 
would be 40 cents, which added to " collect and delivery " and " general ex- 
pense" (20 cents) makes a rate of 60 cents, the first-class rate for the 
combination. 



POSTAL EXPRESS. 47 

COMPENSATING THE RAILWAYS FOR THEIE SERVICES UNDER FAST-FREIGHT EXPRESS. 

In the operation of the proposed agency the Postal Department 
would collect not only its own but the railway share of the rates 
exacted of the shipper. The loadings for railway transportation 
being known, and the number and character of the shipments, the 
total amount owing to the railways as a whole would likewise be 
definitely known. These loadings would go into the railway fund 
for distribution to the railways. But in what proportion should 
the fund be distributed? Here again we meet a condition which, 
while not vital — like transportation accounting — to the economy 
necessary for a feasible rate, is yet a matter of grave importance. 
For if the class weights and journeys of the respective shipments 
have to be related to the specific freight rates of each railway — that 
is, the place-to-place rates have to be consulted — in order to deter- 
mine the railway pay, each rate would have to be substantially 
loaded for the "rate hunting" necessary to determine the railway 
compensation. 

In a country like ours, under the assumed ideal rates of the rail- 
way rate maker (rates that the traffic will bear) there will be an 
approximate, if not a chemical, disposition of the volume of the 
express traffic to bear a quantitative ratio to the volume of the total 
traffic of a railway. This is shown generally in the experience of 
1908 and 1909, when the ratios of the express to the total operating 
revenues of our railways were 2.45 and 2.47 per cent, respectively. 
These ratios are almost exactly constant in the operations of the in- 
dividual railways, and are equally constant proportions of the total 
railway fund. If it be desired to ascertain the proportion of the 
ordinary express-railway fund to which the Pennsylvania Eailroad 
is entitled, three standards suggest themselves: (a) The ratios of its 
total operating receipts to the total operating receipts of the railways 
as a whole; (b) the ratio of its total passenger receipts to the passen- 
ger receipts of the railways as a whole; (c) the ratio of its express 
receipts to the express receipts of the railways as a whole. Thus, if 
its total operating receipts constituted 8 per cent of the operating 
receipts of all the railways, its share of the express-railway fund, 
$100,000,000 would be $8,000,000. Any one of these standards of 
distribution would be better founded than the rules for determining 
postal-railway pay, and even more likely to give a result commen- 
surate with service and revenue criteria than the wholly indefinite 
standards contained in the contracts of the express companies with 
the railways under which, in effect, the rate of railway pay depends 
wholly upon the express rate maker. The ton-mile rule is unscien- 
tific, as the Talcott law of rate declension assuredly shows, even if 
revenue conditions be overlooked. While " any government is better 
than no government" is a sufficient answer to the proposition that 
the railway compensation be relegated to the specific freight rates, it 
is not believed that this argument need be resorted to in defense of 
either of the standards (a), (&), or (c). With respect to railways 
conducting a class traffic, substantially exclusively, and a railway 
conducting a like commodity traffic, i. e., extreme cases of the latter, 
the car-load freight revenue seems now to be ascertainable by refer- 
ence to reports of the Interstate Commerce Commission, and it 
might be found just to deduct such traffic in the interest of correct 



48 POSTAL. EXPKESS. 

ratios. But in the past the railways have been quite willing to in- 
trust their whole freight revenue to such ratios. Witness the pool- 
ing agreements between them, for which a strenuous effort to obtain 
legislative sanction was made on their behalf. Whatever, in the ab- 
stract, may be thought the better standard for distributing express- 
railway pay, it is not thought that any intelligent railway administra- 
tor would favor the piece method for small consignments. By either 
of the standards the railway will be relieved of all accounting, and the 
fast-freight express function equally so, while the small package, 
with the accounting burden off its back, will become a possible article 
of transportation commerce. However, the bill leaves the method 
of paying the respective railways to the board of experts, who, after 
consultation with railway heads, may adopt the most satisfactory 
method. 

RATE-MAKING BODY AND REGULATIONS. 

The rates and practices suggested throughout this study are simply 
expository, as previously stated. With reference to fast- freight ex- 
press, the rates would have to be compounded from averages of many 
more than those I have used ; and it may be that the amount of traffic 
moving on the rates used for such averages should also be considered. 
The rate-making body should have the active cooperation of rail- 
way rate-makers familiar with traffic conditions in the different sec- 
tions. Even when the rates are made they should be taken as pro- 
visional; that is, subject to modification by a rate-making body to 
which the railway and the public might have ready recourse. 

And this conclusion brings us, beyond recall, to a former conclu- 
sion. It is that the rate-making function can not be Congress or any 
of its committees. General principles of social action the Congress 
is constituted to deal with; but the making of specific rates is as 
alien to its function as making astronomical calculations. More- 
over, a law-made rate would be practically unalterable. About once 
in a generation can Congress act on a given subject (witness postal 
railway pay) , while these rates might require frequent readjustments 
in such a period, in the interest of traffic mobility, if not the railway 
pay. There would have to be an administrative tribunal to fix such 
rates in an initiatory way, with an appeal by the public and the rail- 
way to the Interstate Commerce Commission, and this tribunal the 
bill supplies. In this way the necessary elasticity, that is, adapta- 
bility, of the rate to transportation conditions migh be secured. I 
ought to remark before concluding that the circumstances of class 
rates in railway traffic, above the first class, that is, 1£ times, 2 times, 3 
times, and 4 times, the first-class rate has not been overlooked. A con- 
siderable portion of such rates relate to the " set-up " as distinguished 
from the assembled status of the shipment, a condition which might 
exclude such article from the projected service. Such subjects would 
have to be left to regulatory administration and corresponding 
classes made, if desirable. The regulations necessary to administer 
these services I will not undertake to discuss. Their development 
is largely complete in the administration of the express companies; 
and doubtless a large proportion of the German regulations would be 
found useful and applicable. As, in given instances, the regula- 
tion, like a railway practice, may involve serious interests of the 



POSTAL EXPRESS. 49 

shipper or transporting railway, an appeal should also lie to amend 
the regulation. 

It has not been possible, as indeed it is not necessary, to discuss the 
minor details of an operative or fiscal nature involved in the main 
propositions. It is believed that the principal elements have been 
considered, at least in a way sufficient to call for judgment. 

ZONES FOB POSTAL AND FAST-FEEIGHT EXPRESS. 

Postal practice and the postage-stamp rate, while it supplies a 
useful suggestion for simplicity in the rate structure, has been 
applied to the point of absurdity by the proponents of the parcels 
post. Its violation of all economic truths, as applied to package 
transport, has been suggested in an earlier section of this study, and 
further attention to it is not required. 

Generally speaking, there ought to be as many zones as there are 
substantially different degrees of service in the extension of the jour- 
ney. This is true not only on cost reasoning, but because the nearer 
the price of a service approaches its necessary cost the more effective 
can be the demand for its use; and the more extensive the resulting 
traffic. In the application of this truth to parcels weights from an 
ounce up to 5 pounds a graduation of the rates into the calculated 
costs in individual cents may be justified, and with higher weights 
into the nickel and dime. The problem is one to be best decided by 
the expert rate makers after receiving the kind and degree of atten- 
tion which they can, but which Congress could not give the matter. 

Suggestively, however, it may be said that given conditions ought 
to be generalized — as, for example, the rural haul and service, without 
reference to its length or the exact circumstances of the particular 
route. A like rate for all routes might be adopted, while it is not 
improbable that "collect and delivery" charges, urban and rural, 
might wisely be made the same, a small subsidy to the rural traffic 
for the ultimate benefit of town and country. Similarly, rail dis- 
tances should be treated as economically equal for the same lengths 
in all parts of the country. And here we come to the zone idea 
proper. In speaking of zones, people usually have In mind circles 
with radii, each longer than its predecessor. The Talcott formula, 
by which the service is regarded as doubling as the distance quad- 
ruples, seems to express the reasonable application of such zone ideas 
up to about 900 miles. Beyond this point the increasing zone would 
seem to violate important laws of economic cost and traffic desiderata. 

In this, as in other matters, the facts should make the law, and the 
controlling fact for our country is its scale of distances. In Eng- 
land, where the average freight haul is 25 miles, the differences of 
lengths of hauls may be almost negligible, and the other elements of 
service be the dominating ones. With a country 3,000 miles in ex- 
tent the condition is radically changed. Yet it is thought that as 
much simplicity as is really of service might be had by adopting 
for zones distances in miles deduced from the even square-root num- 
bers, counting from 6 up to 30, i. e., from 36 to 900 miles, as indicated 
in the tables. For greater distances hundred-mile zones would be 
necessary to secure an approximation of the rate to the cost of 
service. These suggestions, taken together, would mean a possible 
40 zones, embracing an extreme distance of 3,600 miles. In practice, 

S. Doc. 379, 62-2 4 



50 POSTAL EXPRESS. 

however, the traffic would move within the zones covered by the Tal- 
cott law. Even with the flat rate, letters fall within an average haul 
of 620 miles, about two-thirds only of the extent to which the formula 
is applicable. 

With the determination of the exact dimensions or number of 
the zones, as with rates, it is believed the legislator should exercise 
only an authorizing, and an appellate power; and so this subject 
is also given by the bill to the administrative function. 

POSTAL ECONOMY, SIMPLICITY, AND EFFICIENCY. 

The plain people of the United States have an abiding confidence 
in the service value of the American post office; and this is not 
because of patriotism, but of appreciation of what it does for them. 
It is the one great transportation institution whose single purpose 
is "servamus;" and this purpose it does accomplish in a truly 
wonderful way. Taking a postal card half around the planet for 
a penny. How this strikes the imagination. But does it pay ? Per- 
haps not. But what other institution will render such a service to 
the beggar, and for a beggar's mite? Where others fall it mounts. 
Where private initiative and private capital, acting on the instinct 
of self-preservation refuse to go, it harnesses the dog and the rein- 
deer, and there it goes, carrying the mother's missive and bringing 
back the filial succor of the explorer's new-found gold. In indi- 
viduals this would be but ephemeral heroism, and bring certain 
failure. But the postal system grows with it and seems to thrive. 
Last year, after giving a subsidy of nearly half its service to educa- 
tional publication, it made the 2-cent stamps furnish revenue to pay 
for the whole service. There is spreading through the county a 
demand for penny postage. In terms of European price levels, we 
have it now. Two-cent postage is nearly universal, but the 2 cents in 
the United States represents but half the labor that it does beyond 
the seas. And so the Englishman's 2-cent postage is, in effect but 
penny-postage here. 

All this is, of course, not a mere product of patriotism; but it is 
the zone product of unification of function and a motive to render 
the utmost service. There is the individual motive, first, to serve 
yourself, and thus serve others. There is the social motive, practi- 
cable in a limited number of cases, and it is the motive which, act- 
ing under conditions of complete coordination of functions, explains 
the truly incomparable service of our postal organization. 

WORKING EFFICIENCY. 

There has been a disposition among a certain order of waiters to 
refer the conceded excellency of the operation of public utilities in 
Germany to the military spirit or to the alleged presence there of a 
class accustomed to command and a working class equally accus- 
tomed to obey. Obliged to admit that Germany's experience with 
public functions has been satisfactory these writers insist that our 
democracy precludes any such hope in America. They do not speak 
of mere irregularities here, although these are what they hold up as 
evidence for inefficiency, and since such irregularities in foreign 
countries do not get into our press, a kind of unfavorable impression 



POSTAL EXPKESS. 



51 



is made. Talk of postal deficits is indulged in as if such deficits were 
not merely definite statements of the amount of service given the 
public for which it is not called upon to directly pay. But the point 
of efficiency involves a wholly different element — the amount of 
service rendered by the employees. The table shows this service and 
its extraordinary advancement during a generation, notwithstanding 
the added burdens, notably, the rural free delivery. 

POSTAL EFFICIENCY TABLE. 

Comparative table of the number of pieces of mail matter handled per employee in England, 
France, Germany, and the United States at different periods. 



Countries. 



Average number of pieces of mail matter handled 
per employee in — 



1890 



1895 



1900 



1905 1908 



1909 



England 

France 

Germany 

United States 



22, 230 
34, 590 
17,287 
24,611 



28, 775 
35, 700 
15,638 
26,235 



28, 646 
38, 309 
20, 552 
32, 569 



31,945 
41,958 
22, 160 
42,739 



31,117 
38,241 
25,901 
51, 591 



54,239 



These averages were reached by dividing the total number of 
employees engaged in the postal service into the total number of 
pieces of mail matter for the years given. In the cases of France and 
Great Britain the number of employees was diminished by one-fourth , 
the estimated number employed in the telegraph and telephone serv- 
ice; in the German figures the same reduction for the telegraph and 
telephone employees is also made, but is raised to one-third in 1908. 
The statistics are found in the Union Postale Universelle Statistique 
Generale, published at Berne, Switzerland. 

There are, of course, some slight differences of conditions in the 
work done by the respective postal plants. Postal savings and par- 
cels are all the subjects of more extensive service in the foreign 
examples; but it is believed that these are much more than made up 
in the United States service by its low density of population, entail- 
ing greater railway mail, rural free delivery, and other work expendi- 
tures upon the average mail piece. The marked extent of this con- 
dition is shown by the mere statement of the population per square 
kilometer of area: Eight for the United States, 73 for France, 146 
for Great Britain, and 112 for the German Empire. 



THE COST DECLINE. 



Agreeably different from the express charge, the service cost per 
letter to the patrons of the postal system has progressively decreased 
for a generation. This is shown in the following table : 



Year. 



Number of 
mailed pieces. 



Postal 
expenses. 



Expense 

per mailed 

piece. 



1895 
1900 
1905 
1910 



5,134,281,200 

7,129,990.202 

10,187,505,889 

14,850,102,559 



$87,179,551 
107,319,834 
146,534.284 
193,053,487 



Cents. 



1.70 
1.49 
1.42 
1.30 



52 POSTAL EXPKESS. 

The figures exclude the cost of rural free delivery in 1905 and 1910 
when, if that expenditure be included, the cost per mail piece was 
1.64 and 1.55 cents, respectively. 

UNIFICATION OF POST OFFICE WITH EXPRESS PLANTS. 

The measure designs merging the present express plants into the 
postal department. Only thus can the postal economies of unity of 
service be secured, and the rural free delivery and the general cleri- 
cal agencies be articulated to the express plants. The bill provides 
for retaining the present express employees without civil-service ex- 
aminations. In a year or two they should be placed in the same 
class with railway clerks and mail carriers as to rights and wages. 
The work of assimilation may require a year or more; meanwhile 
the employees and the public will be under the service conditions 
obtaining at the date of the acquisition. It would be impracticable 
for the Congress to attempt to deal in detail with the new acquisi- 
tions. Only departmental knowledge and elasticity could plan and 
execute for the best results. By no means the least advantage to ac- 
crue from the step would be the sure elevation of the working per- 
sonnel, an extremely hard-working body of men. To lift 50,000 of 
these men to the status of the mail clerk and mail carrier is surely a 
worthy purpose of government. 

ADVANTAGES OF THE EXPRESS SYSTEMS PROPOSED. 

It is manifestly difficult to describe in detail the manifold effects 
economically and socially involved in such a system. One of the 
very important results would be the establishment of a modus op- 
erandi for the truck farmer and suburban gardener to connect with 
his patron. 

The agricultural post. — In the present state of things the truckster 
and farmer must devote considerable time to marketing; that is, to 
the transportation of his product, however little it may be, to the 
place of demand. He must also for this purpose provide himself 
with transportation facilities, however small his business. These 
involve a horse and its maintenance and care, and a barn, and the 
expense of both during the unproductive period. And yet in a 
socio-economic sense his work and expense of transportation is the 
smallest element in his service to the public, although it requires 
the maximum of upkeep and expense, if not of capital. The pro- 
posed postal collect and delivery eliminates all these, and would en- 
able the truck farmer and suburban gardener to enter the business 
on a minimum of capital and pursue it on a minimum of labor and 
expense. The field service of a horse he could hire as occasion 
might require. Thus the truck-farming industry would receive a 
necessary impetus, and the cost of such foods be greatly reduced to 
the consumer, saying nothing of the advantage in quality coming 
from a speedier forwarding to the market by "daily allotments instead 
of the delays now incurred to garner a worth-while load. 

On the margin where the railway terminates and the great rural 
and agricultural supplies begin there are transportation conditions, or 
want of conditions, which seem to be vital to the economic prosperity 



POSTAL EXPRESS. 53 

of the country. Take a coal miner at about 60 years of age. He is 
still an athlete, but his lungs become incapacitated to breathe the viti- 
ated air of the coal mines. His arms are good and strong, and he is 
willing to work, but under present conditions he finds himself unable 
to shift from the mines to another employment. He may be able to 
raise three or four hundred dollars to buy a few acres (and there is 
nearly always plenty of land available for truck farming near the 
coal mines) and a little cottage to shelter himself and his wife. 

But that is not all he would have to buy, to-day, in order to go into 
truck farming — raise the necessaries of life for himself and his wife 
and sell the excess to those who needed it in the city. Outside 
of the land and cottage, as things are now, he would have to buy 
himself a transportation system — a horse and wagon, a barn, and 
hay. He would have to maintain this transportation system through- 
out the year, however short the period of actual employment. More- 
over, since the excess production available for sale would be very 
small, he would be taking a great deal of time wagoning his small 
allotments to the town and looking for a market. But articulate the 
railway and the city with the country, through the means already 
in existence — a structure almost complete at this moment — the rural 
free delivery. The miner could then go into the truck business. 
He would not have to buy a transportation system and maintain 
them; he would not need to rush to the town with every 10-pound 
load, at great expense of time and labor and with very little economic 
benefit to the public. Every day, or every other day, or every third 
day, as might be feasible, the postal van would pass his little truck 
farm and receive his allotment packed according to regulations. Let 
me say that this is no dream. I know it is the situation presented 
to nearly every coal miner at some period of his life. How far it 
would be true of men who have tired of the city, of the laborer who 
has been thrown on the scrap heap, unable to secure his old employ- 
ment there; to what extent he would want to become a small truck 
farmer — poor, perhaps, but independent and self-sustaining — I can 
only have a speculative opinion. But ought not the opportunity 
be present? A most interesting monograph, " An agriculture parcel 
post," by the Hon. J. Henniker Heaton, M. P., is inserted among the 
appendices. While this subject is dealt with here in a few words, 
it is none the less true that the farm and suburban forms of produc- 
tion can be so articulated with the points of consumption as to prove 
of inestimable value to both. A lively description of the system in 
Germany, by the Hon. J. C. Monaghan, formerly American consul 
there, is also given in the appendices. 

Even under the largely impossible conditions of land values in 
Great Britain, this result has largely worked itself out. The vital 
necessaries can be obtained fresh from the suburban gardener and 
farmer with the certainty and the celerity of the mail. Besides cre- 
ating a new industry here, suburban gardening, where land is plenty 
for this purpose, it should introduce another element of great desir- 
ability. Now the consumer has no one to blame for bad butter, etc. 
The producer or the time of production he does not know. In the 
new situation the producer has a personal relation with his cus- 
tomers, who can hold him responsible, and, if necessary, punish de- 
linquency with loss of trade. 

I have had an intelligent farmer go over the incidental products of 
his farm, which, when produced in less than wagon-load quantities, 



54 POSTAL EXPKESS. 

can only be marketed at terrific economic expense. His list includes 
the following, as to which, if the service included the collection of the 
price, he says he would ship by the postal van and save the value of 
his presence on the farm : 

Eggs (dozen). Apples. 

Butter. Pears. 

Dressed poultry. String beans. 

Meat, country cured. String peas. 

Celery. Carrots. 

Tomatoes. Parsnips. 

Fruits. Beets. 

Berries, various. Sweet corn. 

Cauliflower. Salsify. 

Cabbage. Honey. 
Turnips. 

The Postal Department would be chiefly concerned in seeing that 
these services produced a total revenue sufficient to pay the total 
expense. A flat rate per pound might prove too high for the market- 
ability of some of these articles, and yet be much less than the 
others could well pay and move to market. And so, while actual 
distance in the rural route, on grounds of general expediency, should 
not be considered, it is believed that the marketability of the article 
should be considered in determining the rate it should bear. It may 
be said that many of these articles are now more cheaply conveyed 
by wagon loads. This is true under certain conditions, but it is 
equally true that when so conveyed the consumer gets no advantage. 
The wagon load goes to the commission man and then indirectly 
only to the consumer. Meanwhile the inevitable act of distribution 
and delivery in quantities to suit the consumer must still be per- 
formed — with no lessening of economic cost because " put off " in- 
stead of primarily performed. Meanwhile, too, the price to the 
consumer has gone up to a point which dumbfounds the producing 
farmer. 

Relieving the high cost of living. — As the President has stated, 
the high cost of living is unquestionably bound up in this legislation. 
The vital necessaries are not too high at the farm, nor yet when the 
mere cost of transportation is added. But our processes of trans- 
portation, where they exist, exclude the consumer from direct con- 
tact with the farmer ; they are 100 pounds and 20 tons processes, not 
practical for the consumer. The individual farmer is helpless to 
correct the uneconomic rural transportation. The individual rail- 
way or express company is equally helpless to correct theirs. The 
people's transportation system, so far as allowed, can correct the 
deficiencies of both, and only awaits the license of Congress to per- 
form its function, enable the railway to carry the shipments in 
quantities to suit the consumer' needs, and provide a direct conduit 
through which may flow the vital necessaries on the farms direct to 
the mouths that eat them in the towns and cities. 

The following table, giving the prices of six of the prime, vital 
necessaries, as sold by the farmer, by the wholesaler, and the prices 
finally paid by the consumers, is based on the quotations of the 
Washington market for a single day. The third and eighth columns 
give the prices paid that day by the consumers, and the seventh, 
ninth, and tenth columns the prices to the consumers under a system 
of transporl ation such as is here urged, carrying the article directly 



POSTAL EXPRESS. 



55 



from the farmer to the consumer in the quantities set forth as 
"units of shipment"; that is, in quantities to suit the needs of an 
average family. 

Table showing effect on high cost of living and prices of the vital necessaries 
of a system of transportation direct from the producer on the farm to the 
consumer in the towns and the cities. 





Present system of costs to con- 
sumer. 


System of costs to consumer under 
postal express. 


Article sold and amount of 
shipment. 


Sold to 

consumer 

at— 


Wholesale 
price. 


Sold by 

producer 

at— 


Direct 
price plus 

postal 
rural trans- 
portation. 


Direct 

price plus 

36 miles 

railway 

haul. 


Direct 
price plus 
100 miles 

railway 

haul. 


Eggs (2 dozen) 


$0.66 

.70 

1.05 

.54 

1.80 
.80-1.00 


$0.52 
.42 
.84 
.33 

1.10 

.50 


$0.44 
.35 
.72 
.24 

.80 
.30 


$0.49 
.40 
.77 
.29 

.89 
.40 


$0.51 
.42 
.79 
.31 

.94 
.52 


$0.52 


Dressed fowl (3J pounds) 

Butter (3 pounds) 


.43 
.80 


Country sausage (3 pounds) 

Country - cured hams (10 
pounds) 


.32 
.97 


Apples (half bushel) 


.55 






Total 


5.55-5.75 


3.71 


2.85 


3.24 
.24 


3.49 
.33 


3.59 


Reduction in transportation 
cost if all ordered together 


.33 













Note. — The last three columns represent the price of the shipment with the estimated cost of transporta- 
tion added to the price at which the article sold in the country, as stated in the fourth column above. 

It appears that the cost of these indispensable necessaries may be 
reduced about two-fifths, or from $5.55 to $3.24, in price to the con- 
sumer by the simple expedient of a direct from-farmer-to-consumer 
method of transportation. In instances where the farmer and con- 
sumer were unknown to each other a small charge of from 3 to 5 
cents would have to be added to pay the cost of collecting the price 
and remitting it to the farmer. But where established custom ob- 
tained even this charge would not be necessary, as periodic settle- 
ments would take the place of the C. O. D. practice. A line in the 
local paper would inform the consumer as to prices and the pro- 
ducer; and a postal card or a phone call would inform the pro- 
ducer of the consumer's wants. The postal transportation conduit 
would then pass the articles from producer to consumer, and col- 
lect and remit the farmer the price, if required. The latter would 
not, as an intelligent constituent writes me, have to leave his farm 
to market a small allotment, when, as he explains : 

It sometimes happens that on the day that I must go to market a field is in 
ideal condition to be prepared for planting a crop, or to cultivate a growing 
crop, or a field of hay or grain is ready to be put in the mow ; but I must go to 
town to dispose of my produce. 

Advantages {resume). — In a few years, under the postal manage- 
ment, it is thought that the reformed and reconstructed express sys- 
tem would give the country — 

(a) A minimum charge of 5 cents for the first pound graduated 
to about 10 cents for a 5-pound package as to the average distances ; 
with a reduction of about one-half in the rates on longer passenger- 
merchandise rates; and fast-freight rates even lower than these. 

(b) The articulation of the railway service with the out-of-town 
and agricultural population. 



56 POSTAL EXPBESS. 

(<?) The relief of the high cost of living by effectually coupling up 
the country supply of the vital necessaries with urban demands by 
a direct, workable, cheap collection and delivery, and railway service. 

(d) Rural delivery being thus made self-sustaining, at length, 
perhaps, a sufficient contribution to penny postage. 

THE OPPOSITION. 

To a large extent the railways are the stockholders of the express 
companies. Their managers are sufficiently intelligent to understand 
inevitable tendencies. They know the status quo certainly involves 
reductions of express rates by the Interstate Commerce Commission, 
which would automatically reduce the express railway pay. If the 
reductions only amounted to 10 per cent, the railways would lose 
over $6,000,000 in their compensation, since the express contracts 
provide not for fixed or pound compensation, but for a percentage 
of the express rates as collected. Moreover, the railways will also 
see that adequate express transportation would inevitably treble the 
traffic ; so that in a year or two the $60,000,000 they now receive from 
this source should amount to over a hundred millions at an incon- 
siderable additional cost to the plant. The railways will likely see 
as well a fine opportunity to substantially promote the public wel- 
fare, with results to themselves as beneficial as to the country at 
large. 

There is no negative opposition — I mean there is no inertia of 
public opinion on the subject. There is, perhaps, no reform as to 
which there has been a longer, a more persistent, or a more general 
demand for congressional action, and perhaps there is no other 
single failure of Congress to gratify public demand that has pro- 
duced so much of the spirit of distrust existing among thoughtful 
people toward their representatives. The retail merchant will not be 
found opposing a method of relief from the express situation which 
embraces the whole people, including himself, while relieving the 
high cost of living as to which he has been subjected to much unjust 
blame. 

PUBLIC OPINION. 

Independently of the matter-of-fact disclosures brought out in this 
study, which seem to have thus far escaped public notice, public dis- 
satisfaction with the express company has reached the point of em- 
phatic intolerance. I do not repeat or even refer to recent incidents 
and events, except to say that the express company employees, and 
their compulsory patrons, have shown, and are showing, this disposi- 
tion. It is, perhaps, literally true, for various causes, that these com- 
panies have no friendly support except from their stockholders, and 
not from all of them ; and when it is considered that the express com- 
pany is not a normal transportation agency, but an economic parasite 
existing as a squatter on the postal function, and like other parasites 
feeding at an inordinate expense to the sustaining subject, it may be 
realized that this dissatisfaction is likely to last. The express part 
of the function is usually elsewhere discharged by the post and the 
railway; the former performing the collect and delivery service in 
Belgium, Austria, and Germany up to the 100-pound limit, entailing 
but one profit, the railway profit, which, theoretically, might be kept 
within bounds, and excluding the express company profit, which in 






POSTAL EXPKESS. 57 

its nature defies prudent and effective reduction, although consti- 
tuting an egregious percentage on the actual investment. When all 
this is taken with the exorbitant rates and the inadequate service, 
the constant feeling of alienation of the public toward these com- 
panies is comprehensible enough. 

APHORISTIC STATESMEN. 

There is a growing suspicion of the intellectual fitness, if not of 
the sincerity, of public men who in office always meet proposals in 
the public interests with some killing adage or other, such as "the 
least government is the best government," " concentration of 
power," "paternalism," etc. These maxims, mostly invented in the 
eighteenth century, were designed to fight injustice and tyranny, 
not to defend them; to make government more democratic, and its 
agencies more truly promotive of the public welfare. As adages they 
served their purpose at the time, but it is hardly sane to accept them 
now as scientific formula? for the determination of twentieth-century 
programs of improvements, and as substitutes for the consideration 
of measures on their merits. That the best modern thought dis- 
countenances such inconsiderate use of mere apothegms needs hardly 
to be proved, yet I am sure the reader will feel interested in an 
appendix to my remarks giving the views of America's foremost 
sociologist on this subject. I should not leave this paragraph with- 
out saying that the proposition is not new in any sense, except our 
provincial neglect to follow the example of all other nations; that 
the post office would not be trespassing on an alien function, but 
merely extending its administration to fully cover a field of its own, 
and a function it alone can efficiently discharge. 

What is the first law of business and industry? It is that the 
inefficient must give way. For centuries the less efficient man has 
given way to the more efficient machine. If this law has no excep- 
tion for the breadwinner and the right of God's creatures to earn 
their bread in the sweat of their faces, why should its operation be 
suspended for an economic parasite, rendering only half service and 
exacting double pay? 

Let us not deceive ourselves as to regulating the express charges. 
We can not practice therapeutics on a parasite. According to the 
necessities of its being it makes war on the life of its sustaining 
subject; and this not only justifies, but necessitates its own extinc- 
tion. All publicists and economists agree in the parasitic verdict, 
that the express company should be extinguished. 

But what is needed is the statesman's constructive purpose. The 
inertia of the last generation, the tories' deeds of omission and of 
commission, the evolution of the high-priced monopolies, and almost 
utter neglect of transportation policy have produced in this richest 
and most fertile of countries the consumer who finds it difficult to 
purchase his necessaries though working on full time, and on full 
pay. The association of defective transportation methods with the 
condition has been methodically pointed out. And the thoroughly 
tested agency essential to relief is our own instrumentality, the 
most proficient of all government, and, perhaps, of all transportation 
agencies. It has been the boast of our history that when the crisis 
came the statesmanship was not wanting. May it not fail us now in 
a situation as full of opportunity as it is of peril for the country. 



APPENDIXES. 



Appendix A. — The bill and law notes. 

Appendix B. — Data of express and 
freight traffic in different coun- 
tries. 

Appendix C. — Capital balance sheet of 
American express companies. 

Appendix D. — Express statistics 1909, 
1910, 1911. 

Appendix E. — Ten examples of actual 
express rates from 5 to 100 pounds, 
for distances of 36 to 3,600 miles. 

Appendix F. — Analysis of operating 
expenses of express companies and 
predicated savings. 

Appendix G. — Summary of express- 
railway contracts. 

Appendix H. — Pound and parcels ex- 
press company data. 

Appendix I. — Monthly payment rev- 
enue and expenses. 

Appendix J. — Mileage covered by ex- 
press companies. 

Appendix K. — Cost of real property 
and equipment. 

Appendix L. — Inventory value of 
equipment. 

Appendix M. — Operating income and 
expenditures. 

Appendix N. — Operating revenue. 

Appendix O. — American postal effi- 
ciency. 

Appendix P. — British, French, and Ger- 
man postal efficiency. 



Appendix Q. — Letter British post- 
master general on relative number 
of postal, telephone, and telegraph 
employees. 

Appendix R. — Service cost of Amer- 
ican mail. 

Appendix S. — Examples of postal ex- 
press. 

Appendix T. — Comparative express 
and freight traffic per capita in dif- 
ferent countries. 

Appendix U. — The parcel-post system 
of Germany. 

Appendix V. — Cost of railway trans- 
portation of mails, etc. 

Appendix W. — An agricultural parcel 
post, by J. Henniker Heaton, M. P. 

Appendix X. — Express rates in Great 
Britain. 

Appendix Y. — Letter of Postmaster 
General : Number served by rural 
free delivery and by urban delivery. 

Appendix Z. — The sociological view. 

Appendix AA. — Summary of parcels- 
post bills. 

Appendix AB. — Representative freight 
rates, various distances. 

Appendix AC. — Letter Assistant Post- 
master General. 

Appendix AD. — Graduated English ex- 
press charges. 






Appendix A. 



A BILL Providing for the condemnation and purchase of the franchises, etc., of the 
express companies of the United States and the establishment of postal and fast- 
freight express. 

CONDEMNATION OF EXPBESS COMPANY FEANCHISES. 

Be it enacted by the Senate and House of Representatives of the United States 
of America in Congress assembled, That in order to promote the postal service 
and more efficiently regulate commerce between the several States, the Terri- 
tories of the United States, the District of Columbia, the possessions of the 
United States, and foreign nations, the contracts and agreements (note one) and 
arrangements of the several express companies with the several railroad com- 
panies of the United States, its Territories, and the District of Columbia relat- 
ing to the carriage and transportation, and storage and care, by such railroad 
company of parcels, packets and packages, and other express matter, as well as 
the franchises, operating equipment, cars, vehicles, horses, buildings, leases as 
lessees, of buildings used in the conduct of the express buiness, and all other 
property or rights and privileges owned and used by such express companies as 
necessary and appropriate to such dispatch, receipt, collection, delivery, or 
transportation of such parcels, packets, packages, and express matter are hereby 
declared to be, and the same are hereby, condemned and appropriated (note two) 
to and for the use of the United States of America, to be used by it for such 
public purposes as may be proper in its various functions. That the words 
" express company," as used in this act, shall be construed to include any 
corporation, individual, partnership, association, or joint-stock association, as 

59 



60 POSTAL EXPKESS. 

far as engaged in the dispatch of parcels, packets, packages, and other express 
matter by railway, express, or steamship, including the receipt, collection, or 
delivery of the same. And the words " railroad company " shall be construed 
to include any transportation agency as far as used as a post route or in: 
carrying express matter. (Note three.) On and after July first, nineteen hun- 
dred and thirteen, any railroad, steamship, or other transportation agency 
having a contract with any express company subject to this act shall transport 
and carry for the Post Office Department all matter transportable under said 
contract, and shall execute and perform with respect to such Post Office Depart- 
ment all such duties as have been customary under such contract in relation to 
the express company or companies named therein, and shall permit its agents 
and employees to continue to discharge such services in respect thereto and 
upon like terms without interference on its part. And as to all matter trans- 
portable under such contract the Post Office Department shall have a monopoly 
of the express transportation thereof. (Note four.) 

DUTY OF PRESIDENT AND POSTMASTER GENERAL. 

Sec. 2. That it shall be the duty of the President, on the first day of July, 
nineteen hundred and thirteen, to take charge and possession of all the property 
of such express companies condemned and appropriated in section one of this 
act, in the name of and by the authority of the United States of America ; and 
thereupon it shall be the duty of the Postmaster General to employ said property 
and facilities as hitherto employed in conjunction with the postal service, and 
to henceforth conduct said express service. 

Sec. 3. That it shall be the duty of the Interstate Commerce Commission upon 
the passage of this act and after due consideration to submit a list of seven 
persons, expert in transportation economics, with its recommendations, to 
the President, who shall appoint therefrom three of said persons, judged most 
competent, who shall, if the Senate consent thereto, hold office for the term of 
four years and receive a salary of seven thousand dollars each. Said three per- 
sons shall act as a board of experts and, subject to the confirmation of their 
orders by the Postmaster General, shall have power — 

(a) To devise classifications of parcels, packets, packages, and other ship- 
ments, and to regulate the forms and conditions for the shipment thereof. 

(&) To fix charges for collecting, receiving, transporting, by railroad or other- 
wise, and delivering of matter under paragraph (a), and such charges may be by 
zones reasonably related to the cost of service. 

(c) And thejr shall base such charges upon the amount of service to be ren- 
dered, considering distance transported and other service elements and risk 
involved therein, making the charges adequate to paying the cost of the service, 
including interest charges. 

(d) To make all regulations which may be necessary for insuring payment of 
charges and the safe, expeditious, economical, and profitable administration of 
such service. 

(e) To make regulations defining the rights and duties of the employees in 
such service; and they shall retain, so far as necessary, those formerly em- 
ployed by the express companies, who shall not be required to pass civil-service 
examination. 

(/) To determine by regulation the wages payable to such employees, the 
sick leave or vacation periods, and the necessary qualifications of employees 
for service and promotion. 

(g) To provide for a system of insurance of employees against accident, to 
be paid for by the department. 

(h) To declare by rules under what circumstances and to what extent matter 
received for shipment under paragraph (a) may be insured against loss, and 
provide rates for the special insurance thereof, and rules for the indemnification 
of shippers. 

(i) To make agreements with carrying railroads or other agencies of trans- 
portation for the carriage or extension of service of such matter, subject to the 
appeal hereinafter provided, to the Interstate Commerce Commission. 

(/) To establish from time to time, and in such places as they may by rule 
determine, rural collection and delivery and urban collection and delivery for 
such parcels, packets, packages, and postal matter and express matter as they 
may determine upon and under such regulations as to rates and conditions of 
carriage thereof as they may deem prudent. 

(fc) To provide, as far as possible, for the exemption of postal express em- 
ployees from labor on the Sabbath. 



POSTAL EXPKESS. 61 

(I) To make all other regulations necessary for the efficient and economical 
operation of the service and to provide all means necessary for the safe and 
expeditious transportation and forwarding of money and credit, and to fix the 
rates therefor, and to make all regulations deemed essential thereto, and to 
provide means to discharge all other functions which they may deem proper 
hitherto discharged by express companies, and to make any other regulations 
essential in relation thereto. 

But from any action of the Postmaster General in confirming regulations 
under paragraphs (a), (6), (c), (d), (*), (/), and (I) hereof an appeal shall 
lie by any party competent under the act to regulate commerce dated the fourth 
day of February, eighteen hundred and eighty-seven, and the amendments 
thereto, to the Interstate Commerce Commission, which shall have power to 
revise and amend the said regulations. 

COMPENSATION FOB EAILBOAD TRANSPORTATION. 

Sec. 4. That during the months of August and December, nineteen hundred 
and twelve, and April, nineteen hundred and thirteen, the weights of matter 
carried over the respective railroads under contracts with the express com- 
panies, during the dependency thereof, shall be carefully taken for each railroad 
company in respect to such contract; and the amount of money paid for the 
carriage thereof shall be divided by the mileage of such railway over which 
such matter is carried ; and thereafter the Postmaster General shall, if the rail- 
road company consent thereto, cause to be paid to such railroad company the 
amount per mile owing to such railroad under such contract as thus com- 
puted; and thereafter, annually, at such times as may be determined upon by the 
Postmaster General, such matter shall be weighed, and the railroad company 
shall be paid monthly for the excess weight carried by it, over the first weigh- 
ing herein provided, such sums as may be agreed upon for such excess weights ; 
but if said Postmaster General and such railroad company ^hall fail to agree 
upon a different basis of compensation for such excess weights, then the same 
shall be paid for according to the terms and provisions of the contract con- 
demned in such case. 

RENEWAL OF TRANSPORTATION CONTRACTS. 

Sec. 5. That at the expiration of any contract, between an express company 
and a railroad, condemned by this act (or at any time before, if such railroad 
company shall consent thereto), the Postmaster General may contract with such 
railroad company for the transportation of postal express matter; and, if 
deemed advantageous, upon cars provided by the department, which may be 
transferred without unloading onto the lines of other railroad companies, 
and at such rate of compensation and upon such principles of computation 
thereof, by car or car-space mileage, or otherwise, as may be agreed upon. 
But an appeal shall lie, for the purpose of review, to the Interstate Commerce 
Commission by any party competent under the act to regulate commerce, from 
such contract, whereupon the Interstate Commerce Commission shall have the 
power to revise and amend and define and declare the terms and conditions 
of said contract. And in case the Postmaster General and such railroad com- 
pany, after the expiration of the contract with an express company, shall fail 
to agree upon the terms and provisions of the renewal thereof, they shall 
submit their respective contentions and propositions with reference thereto to 
he said Interstate Commerce Commission, which shall thereupon have plenary 
power to declare the terms and provisions which said contract shall contain. 
And from any determination with respect to any contract the terms and pro- 
visions of which have been declared by the said Interstate Commerce Com- 
mission under this section, an appeal shall lie to the Court of Commerce, which 
shall enjoy like power to revise and amend the same. 

APPRAISEMENT OF EXPRESS COMPANY FRANCHISES, ETC. 

Sec. 6. That immediately after the passage of this act it shall be the duty of 
the Interstate Commerce Commission to appraise (Note 5) the values of the 
contracts, agreements, franchises, equipment, buildings, and other property of 
whatsoever kind, condemned and appropriated by the United States in section 
one of this act, and award to the respective express companies just compensa- 
tion therefor. Each commissioner shall take oath to justly perform such duty 
before some judge of the courts of the United States. The said Interstate Com- 
merce Commission shall have power and it shall be its duty to summon wit- 



62 POSTAL EXPRESS. 

nesses, with books and papers, before it for either of the parties, and require 
such witnesses to testify, and it shall give to each party a full hearing with 
reference to the amount of compensation which shall be awarded to each ex- 
press company under this act; and it shall be the duty of such commission, on 
or before the seventh day of May, nineteen hundred and thirteen, to file a sepa- 
rate award of appraisement, giving just compensation to each express company 
for its property condemned under this act, and give notice of the filing of such 
award to the Postmaster General and to such express company. And if either 
party shall be dissatisfied with the amount of said award the same may, on ap- 
peal by either party, be reviewed and revised by the Court of Commerce, sitting 
as a court of review, with respect thereto ; and from its determination a further 
appeal may lie on behalf of either of the parties to the Supreme Court of the 
United States, to determine the amount of the just compensation to which said 
express company shall be entitled. 

PEOVISIONS FOR COMPENSATION OP EXPRESS COMPANIES. 

Sec. 7. That the Secretary of the Treasury is hereby authorized and directed 
to make payment to such express companies of the money adjudged to be due 
them as aforesaid out of the Treasury of the United States, and said express 
companies shall be entitled to payment of such final award as compensation 
from the Treasury of the United States, and the amounts of said award are 
hereby appropriated to the parties entitled thereto out of the Treasury of the 
United States. Any party interested in the distribution of such compensation 
money may petition the circuit court of the United States having jurisdiction 
of the subject matter, which court shall thereupon distribute the compensation 
directly by proper audits to the several stockholders, bondholders, partners, or 
individuals entitled thereto; and in such cases the Treasurer of the United 
States shall pay out such compensation as such court may direct; and the 
parties to whon> the same may be paid shall assign their rights unto the 
United States with reference thereto, whereupon the United States shall enjoy 
the same rights and the same power under the same as the assignor enjoyed 
prior to such condemnation. 

ISSUE OF BONDS AND REDEMPTION OF THE SAME. 

Sec 8. That the Secretary of the Treasury shall cause r to be issued in proper 
form the bonds of the United States of America in a sum equal to the aggre- 
gate valuation of such express companies, as determined by the awards herein- 
before provided for. Said bonds shall be payable within forty years from the 
date of issue and bear interest at the rate of per cent, and such Treasu- 
rer shall maintain a fund for the payment of such interest and the redemption 
of the bonds issued under this act; and for such purpose the Postmaster Gen- 
eral shall pay, out of the receipts of his department, under the Secretary of 
the Treasury, a sum equal to such interest and a redemption sum equal to 
one per cent of the aggregate awards to such express companies each year, 
which sum shall be payable quarterly. The said fund shall be invested from 
time to time in such securities as the Secretary of the Treasury may deem 
secure and profitable. The sum of two hundred and fifty thousand dollars, or 
so much thereof as may be necessary, is hereby appropriated out of the 
Treasury of the United States to the Postmaster General and the Department 
of Justice, to be used, so far as necessary, upon their order in defraying the 
expense incident to acquiring such property. 

ESTABLISHMENT OF FAST-FREIGHT EXPRESS SERVICE. 

Sec 9. That there is hereby established, and the Postmaster General shall 
conduct, as soon as may be practicable, a fast-freight express service; and there 
shall be received therein, and transported over the railways of the United 
States and such water agencies as may be determined upon by the board of 
experts, such articles for shipment, and in such weights, no.t exceeding one 
hundred pounds, as, subject to the confirmation of the Postmaster General, 
may be determined upon by said board of experts; and they shall have the 
same powers with respect to such shipments as are given them in section three 
of this act, and in addition to such powers they shall have power, with respect 
to such fast-freight service, to 

(a) Formulate and establish a classification of the articles transportable 
under this section, to conform, as near as may be, to the classifications of the 
railways. 



POSTAL EXPKESS. 63 

(5) Determine similarly the classes into which such articles shall be 
assigned. 

(c) Establish the rates for the care and carriage of such articles and the 
proportions of such rates which shall become payable to the railway or water 
carriers as compensation for their services. 

(d) Determine the method or methods of ascertaining the amounts, respec- 
tively, payable such carriers for their services, and the times of payment. 

(e) Employ the postal cars or passenger-baggage cars, at such places as are 
not served by fast-freight facilities, for limited distances, to expedite such ship- 
ments, paying therefor the rates lawfully established; but such payment shall 
not exceed the rates charged by the carrier, per pound, to other shippers for 
maximum weights, minimum charges or regulations of the carrier to the con- 
trary notwithstanding. 

And from all orders of said board of experts, when confirmed by the Post- 
master General under paragraphs (a), (6), (c), (d), and (e) of this section, 
an appeal may be taken to the Interstate Commerce Commission by an carrier 
affected thereby, or by any party legally competent to file a petition with said 
Interstate Commerce Commission under the act of Congress approved Feb- 
ruary fourth, eighteen hundred and eighty-seven, and the amendments thereto ; 
which right of petition is hereby granted to the Postmaster General as to any 
rate or practice of such carrier affecting the service hereby established: Pro- 
vided, That in case the loadings of the fast freight rates hereunder for the 
payment of the carrier on any shipment carried by it shall be less per pound 
than its hundred-pound lawful rate applicable thereto if the shipment weighed 
one thousand pounds, then such carrier shall be entitled to a lien on said ship- 
ment for the difference according to its weight; and the Postmaster General 
shall make proper regulations for the collection of such difference from the 
consignee or consignor before delivery of the shipment. The carriers by rail- 
road and by water which are subject to the power of Congress are hereby 
required to perform such services for the postal department as may upon the 
advice of the board of experts be ordered by the Postmaster General, and for 
such compensation as may be provided therefor, subject to the action, on appeal, 
of the Interstate Commerce Commission ; and for any willful failure or refusal 
to perform the services required by any valid order of the said Postmaster 
General the said carrier shall be subject to indictment and the payment on con- 
viction of a fine of one thousand dollars. 

POWERS OF POSTMASTER GENERAL. 

Sec. 10. That the Postmaster General shall have power to rent, lease, or 
purchase real estate and personal property, supplies, cars, and equipment for 
use by his department for the purposes of this act. He shall have power to 
condemn in the name of the United States any property, real, personal, or 
mixed, which he may deem necessary for the efficient operation of the service, 
but the said Interstate Commerce Commission shall first value and file its award 
therefor, as hereinbefore specified. 

NOTES. 

Note 1, section 1: "Contracts are property, and as such may be condemned and 
taken under the law of eminent domain." (10 Am. and Eng. Ency., p. 1089; Dodge 
v. Woolsey, 18 Howard (U. S.), 379; Nichols on Eminent Domain, sec. 315.) 

Note 2, section 1: The United States possesses the power of eminent domain, which 
it may exercise to promote any of its constitutional powers. (10 Am. and Eng. Ency., 
p. 1051; Kohl v. U. S., 91 U. S., 367; 15 Cyc, p. 564-565.) The United States may 
condemn interstate railwavs. (Nichols on Eminent Domain, sec. 23; Wilson v. Shaw, 
204 U. S., 24; Monongahela case, 148 U. S., 341-342.) 

Note 3, section 1: This power of condemnation may be exercised directly by the 
legislative branch. The only limitation is that just compensation shall be provided 
for. (10 Am. and Eng. Ency., p. 1068; Secombe v. Milwaukee, 23, Wall., 108.) 

Note 4, section 2: In those cases where the condemnor is the sovereign the compen- 
sation need not be tendered or ascertained in advance of the taking. It is only neces- 
sary that adequate provision be made for compensation. (10 Am. and Eng. Ency., 
p. 1142, note 2; Nichols on Eminent Domain, sec. 263; Sweet v. Rechel, 159 U. S., 
380; Williams v. Parker, 188 U. S., 491.) 

Note 5, section 5: The owner of property condemned by the United States is not 
entitled to a jury, but commissioners may determine the amount of compensation, 
etc. (Nichols on Eminent Domain, sees. 302, 306; U. S. v. Jones, 109 U. S., 513, 
569; 169 U. S., 567; 11 Peters, 420, 571; 148 U. S., 312, 327.) 



64 



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POSTAL EXPRESS. 65 

Appendix C. 
General balance-sheet statement as of June SO, 1909. 

[Annual report express companies.] 
Assets: 

Expenditures for real property $14, 932, 169. 94 

Expenditures for equipment 7, 381, 405. 59 

Stocks owned.'. 40,912,980.55 

Funded debt owned 45, 955, 672. 54 

Other permanent investments 25, 438, 584. 11 

Cash and current assets 33, 682, 608. 88 

Materials and supplies 138, 210. 78 

Sinking, insurance, and other funds 128, 491. 83 

Advance payments On contracts 5,836, 666. 67 

Franchises, good will, etc 10, 877, 369. 74 

Other assets 846, 090. 33 

Profit and loss 91,129.58 

Total assets 186, 221, 380. 54 

Liabilities: 

Capital stock 53, 350, 700. 00 

Funded debt 36, 000, 000. 00 

Current liabilities 24, 980, 828. 23 

Other liabilities 21,273,493.78 

Profit and loss • 50,616,358.53 

Total liabilities 186,221,380.54 

S. Doc. 379, 62-2 5 









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POSTAL EXPKESS. 



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POSTAL EXPRESS. 



73 



Appendix F. 

Analysis of operating expenses of express companies for the year ending June SO, 1909, with 

predicated savings under postal express. 

[Interstate Commerce Report, 1911.] 



Accounts. 



Total operating expenses. 



Maintenance: 

1. Superintendence 

2. Buildings, fixtures, and grounds. 

3. Office equipment 

Cars — Repairs 

Cars— Renewals 

Cars— Depreciation 

Horses 

Vehicles— Repairs 

Vehicles— Renewals 

Stable equipment 

Transporation equipment , 

Other expenses 

13. Maintaining joint facilities— Dr.. 

14. Maintaining joint facilities— Cr... 



4. 

5. 

6. 

7. 

8. 

9. 
10. 
11. 
12. 



Total. 



Traffic expenses: 

15. Superintendence 

16. Outside agencies 

17. Advertising , 

18. Traffic associations 

19. Stationery and printing. 

20. Other expenses 



Total. 



Transportation expenses: 

21. Superintendence 

22. Office employees 

23. Commissions 

24. Wagon employees 

25. Office supplies and expenses. . 

26. Rent of local offices 

27. Stable employees 

28. Stable supplies and expenses. 

29. Train employees 

30. Train supplies and expenses. . 

31. Transfer employees 

32. Transfer expenses 

33. Stationery and printing 

34. Loss and damage, freight 

35. Loss and damage, money 

36. Damage to property 

37. Injuries to persons 

38. Other expenses 

39. Operating joint facilities— Dr. 

40. Operating joint facilities— Cr. . 



Total. 



General expenses: 

41. Salaries and expenses of general officers 

Salaries and expenses of clerks and attendants. 

General office supplies and expenses 

Law expenses 

Insurance 

Pensions 

Stationery and printing 

Other expenses 

General administration joint facilities— Dr 

General administration joint facilities— Cr 



42. 
43. 
44. 
45. 
46. 
47. 
48. 
49. 
50. 



Total. 



Total operating expense and savings . 

Add profits 

Add taxes 



Less interest on bonds 

Net savings and profits. 



Operating 
totals. 



$56,273,055.29 



62. 008. 29 
125,994.14 
281,869.14 

20,232.47 



16,040.00 

525, 121. 27 

682, 038. 82 

149,923.08 

198, 710. 13 

150, 277. 19 

2, 909. 49 

39, 556. 42 

55, 029. 06 



2, 199, 651. 38 



320, 927. 68 

177, 101. 45 

20, 517. 55 

41,924.19 

96, 642. 48 

562. 79 



657, 676. 14 



2, 
13, 
6, 
7, 
1, 
2, 
1, 
4, 
4, 

2, 

1, 
1, 



331, 191. 
574, 264. 
621,952. 
556, 475. 
418, 490. 
181, 523. 
078,689. 
649,615. 
665,864. 
134,149. 
132,781. 
119,066. 
157,599. 
321,258. 

51,297. 

11,077. 
107,041. 

11,241. 
285,593. 
136, 142. 



49,273,031.18 



860,029.70 

2,417,486.16 

169,098.01 

240,739.62 

148,963.02 

123,610.37 

105,834.52 

76,747.20 

6,695.75 

6,507.76 



4,142,696.59 



56,273,055.29 



Predicated 
savings. 



C 1 ) 



$40,000.00 
100,000.00 
181,000.00 



350, 000. 00 
454,000.00 
100, 000. 00 
132,000.00 
100,000.00 



1,457,000.00 



320,927.68 

177, 101. 45 

16, 000. 00 

41,924.19 

96,642.48 



652,595.80 



1, 165, 090. 00 
4, 527, 088. 00 
3,307,317.00 
1,389,119.00 

709,245.00 
1,090,761.00 

539,344.00 
2,324,804.08 
2,332,932.00 



213,278.00 

11,906.00 

385,866.00 



17,996,750.00 



573,352.00 

1,812,363.00 

126,747.00 

120,369.00 

70,000.00 



79,302.00 



2,782,133.00 



22,988,477.00 

11,387,489.00 

906, 519. 00 



35,282,485.00 
1,000,000.00 



34,282,485.00 



i The report by the Interstate Commerce Commission does not, include this column. 



74 POSTAL EXPRESS. 

Appendix G. 

OPERATING CONTRACTS AND PRACTICES. 

[Report Interstate Commerce Commission.] 

The contract between an express company and a railway company usually pro- 
vides that the express company shall have the exclusive right to operate upon lines 
named in the contract for a definite term of years; that all matter carried upon passen- 
ger trains except personal baggage, corpses, milk cans, dogs, and certain other com- 
modities shall be turned over by the railway company to the express company (the 
contract in one case going so far as to state that all packages or freight carried upon 
any train at passenger-train speed are to be considered express matter and turned 
over by the railway company to the express company); that the railway company 
shall transport to and from all points on its lines all express matter in charge of the 
express company; that special or exclusive express trains shall be provided by the 
railway company when warranted by the volume of express traffic; that the railway 
company shall furnish the necessary cars, keep them in good repair, furnish heat and 
light, and carry the messengers of the express company; as well as the safes, packing 
trunks, and all necessary equipment; and that horses, wagons, and supplies required by 
the express company may either be transported in express cars or be shipped by freight. 

The contract further provides that the officers and employees of the express com- 
pany, when traveling upon the business of the company, shall be carried free by the 
railway; that the railway company shall furnish such room in all its depots, stations, 
and buildings as may be necessary for the loading, unloading, transferring, and stor- 
age of express matter, provided the furnishing of such facilities shall not interfere with 
the business of the railway company; that the express company may employ during 
the pleasure of the railway company any of the agents of the latter as the agents of 
the express company, and may employ the train baggagemen as its messengers, pro- 
vided that such employment shall not interfere with the duties of the employees to 
the railway company, but the express company alone is liable for the misconduct of 
such agents in respect to its express business when so employed. The express com- 
pany, in respect to all matter carried free of charge for the railway company, is not 
liable for any loss or damage occasioned by accidents to trains, or by fraud or theft, 
or by casualties of any kind. The railway company further agrees to transmit free 
of charge the messages of the express company over telegraph lines which the railway 
company operates along its lines of road so far as it may be permitted to do so under 
its contracts with telegraph companies. 

The express company, on its part, agrees to pay a fixed per cent of its gross receipts 
from handling express matter (with the larger railway companies generally a mini- 
mum payment is guaranteed); to charge no rate at less than an agreed per cent of the 
freight rates on the same commodity (usually 150 per cent); to handle, free of charge, 
money; bonds, valuables, and ordinary express matter of the railway company; to 
indemnify the railway company for any damages sustained in consequence of the 
death of or injury to any employee of the express company; to assume sole responsi- 
bility for loss of or damage to the express matter in its custody other than the express 
matter of the railway company carried free of charge; and to pay to the railway com- 
pany an agreed proportion of the salaries or wages of such employees of the railway 
company as render services to the express company. The railway company has the 
right to examine the books, records, and accounts of the express company so far as 
they relate to the business done under the contract, and may require reasonable safe- 
guards and checks for the purpose of securing correctness in accounting to it for the 
business done over its lines. 

Under some of the contracts the express company agrees not to operate over a com- 
peting line of road, and in one contract examined it was found that the railway com- 
pany required that the express company "shall not fix its rates for transportation and 
other services connected with the express business via the railroads of the railroad 
company at any less than the rates fixed by other express carriers between the same 
points, except that in case of disability or deficiency of routes via the railroads of the 
railroad company by reason of greater distance, longer time in transit, " or other reasons 
to the prejudice of the routes via the lines of the railway company, the express com- 
pany has the right to make a sufficient reduction in the rate to retain a proper share 
of the competitive traffic. 

In small towns it is customary for the railway agent to act as the express agent also, 
being paid by the express company an agreed percentage of the revenue from business 
done. Generally speaking, the commission allowed such agents is 10 per cent on both 
inbound and outbound business and a commission of one-third the charges on money- 
order sales. The amounts paid by express companies are taken into consideration by 
the railway companies in fixing the salaries of station agents, and the salaries paid by 
the railway companies are adjusted accordingly. 



POSTAL EXPRESS. 



75 



On many roads the express messengers act as train baggagemen, in which case 
their salaries are divided between the companies concerned on an agreed basis. 

The express company keeps the accounts between itself and the railway company 
and settles with the railway company on the basis of the amount shown in its accounts. 
The revenue earned on a given line of road when a shipment is carried over two or 
more lines is arrived at by the use of a mileage prorate or of a rate prorate. Where 
the rate prorate is used, the local rates per 100 pounds from point of origin to the junc- 
tion point and from the junction point to destination are ascertained, and either line's 
proportion of the revenue from a through shipment at a through rate is determined by 
dividing the revenue in the ratio of the local rates. 

The amount of revenue accruing on a given line having been determined by an 
express company, the amount due the railway company is computed by applying 
the percentage agreed upon in the contract. With some of the smaller railway com- 
panies, electric lines, and steamboat lines there is still used the tonnage basis of con- 
tract — that is, an agreed rate per 100 pounds — but, generally speaking, the percentage 
basis is the one used. 

The interest of the public in the percentage contract lies in the fact that an increase 
in the compensation received by the express company carries with it a relative in- 
crease to the other party. 



Appendix H. 

Statistics of revenue tonnage for the months of April, August, and December, 1909. 

[Represents combined returns for the following express companies: Adams, 1 American, Canadian,Canadian 
Northern, Globe, Great Northern, Long Island, National, Northern, Pacific, 2 Southern, United States, 
Wells, Fargo & Co., 1 and Western.] 

[Report of Interstate Commerce Commission.] 



Items. 



April. 



August. 



December. 



Total or aver- 
age for three 
months. 



Pieces weighing 100 pounds or less: 

Number of pieces 

Aggregate weight pounds. 

Average weight per piece do. . . 

Revenue dollars. 

Average revenue per piece, .cents. 

Average revenue per pound.. do. . . 
Pieces weighing over 100 pounds: 

Number of pieces 

Aggregate weight pounds. 

Average weight per piece do. . . 

Revenue dollars. 

Average revenue per piece, .cents. 

Average revenue per pound.. do. . . 
Extraordinary shipments: 

Number of pieces 

Aggregate weight pounds. 

Average weight per piece do. . . 

Revenue dollars. 

Average revenue per piece, .cents. 

Average revenue per pound.. do. . . 
Total, all shipments: 

Number of pieces 

Aggregate weight pounds. 

Average weight per piece do. . . 

Revenue dollars. 

Average revenue per piece, .cents. 

Average revenue per pound.. do. . . 
Ratios of items to corresponding totals: 

Number of pieces weighing 100 
pounds or less percent. 

Number of pieces weighing over 
100 pounds per cent. 

Number of extraordinary ship- 
ments per cent. 

Weight of pieces weighing 100 
pounds or less percent. 

Weight of pieces weighing over 100 
pounds per cent. 

Weight of extraordinary ship- 
ments per cent. 

Revenue on pieces weighing 100 
pounds or less percent. 

Revenue on pieces weighing over 
100 pounds per cent. 

Revenue on extraordinary ship- 
ments per cent. 



20,951,305 

512,288,348 

24.46 

9,481,154.44 

45.25 

1.85 

981,663 

158 778,538 

161. 74 

1,522,922.38 

155. 14 

.96 

14,625 

14,147,711 

967.36 

228,240.96 

1,560.62 

1.61 

21,947,593 

685,214,597 

31.22 

11,232,317.78 

51.18 

1.64 



95.46 

4.47 

.07 

74.76 

23.17 

2.07 

84.41 

13.56 

2.03 



21,242,169 

640,699,767 

30.16 

8,406,155.54 

39.57 

1.31 

1,182,768 

187,169,775 

158. 25 

1,606,251.89 

135.80 

.86 

10,719 

13,886,691 

1,295.52 

193,615.11 

1,806.28 

1.39 

22,435,656 

841,756,233 

37. 52 

10,206,022.54 

45.49 

1.21 



94.68 

5.27 

.05 

76.11 

22.24 

1.65 

82.36 

15.74 

1.90 



25,276,014 

572,203,515 

22.64 

12,119,435.84 

47.95 

2.12 

1,342,220 

217,864,859 

162. 32 

2,120,904.34 

158. 01 

.97 

11,812 

12,302,988 

1,041.57 

177,871.06 

1,505.85 

1.45 

26,630,046 

802,371,362 

30.13 

14,418,211.24 

54.14 

1.80 



94.92 

5.04 

.04 

71.32 

27.15 

1.53 

84.06 

14.71 

1.23 



67,469,488 

1,725,191,630 

25.57 

30,006,745.82 

44.47 

1.74 

3,506,651 

563,813,172 

160. 78 

5,250,078.61 

149. 72 

.93 

37,156 

40,337,390 

1,085.62 

599,727.13 

1,614.08 

1.49 

71,013,295 

2,329,342,192 

32.80 

35,856,551.56 

50.49 

1.54 



95.01 

4.94 

.05 

74.06 

24.21 

1.73 

83. 69 

14.64 

1.67 



April report excludes returned empty carriers. 

April report excludes a portion of returned empty carriers. 



76 



POSTAL EXPRESS. 



There is slight need for textual comment on the information presented in the above 
summary. Every item is significant for one who desires to gain an adequate concep- 
tion of the scope and character of the express business. Though the aggregates would 
vary for the several months and for the same month from year to year, the averages 
and percentages may be accepted as fairly portraying the traffic conditions under which 
express companies operate. It is significant to observe that 95.01 per cent of the num- 
ber of pieces handled, 74.06 per cent of the weight, and 83.69 per cent of the accruing 
revenue pertain to express matter of 100 pounds or less. It is further significant to 
learn that of this class of traffic the average weight per piece is 25.57 pounds, and the 
average revenue per pound is 1.74 cents. It is proposed to test the accuracy of these 
averages from time to time by the selection of other months than those named, although 
there is little likelihood that a compilation for all the months of the year would seriously 
affect the averages here disclosed, or that future tests will modify them in any marked 
degree. These averages may be used with reasonable confidence as long as express 
companies operate under present traffic, tariff, and contractual conditions. 



Appendix I. 

Statement showing results of operation combined for the months of April, August, and 
December, 1909, and an apportionment of operating costs between tonnage revenue and 
other revenue. 

MONTHLY REPORTS OP REVENUES AND EXPENSES. 

[Represents combined returns for the following express companies: Adams, American, Globe, Great 
Northern, National, Northern, Pacific, Southern, United States, Wells, Fargo & Co., and Western.] 

[Interstate Commerce Commission.] 





Amount. 


Apportionment between — 




Tonnage revenue. 






Amount. 


Aver- 
age per 

piece 
(cents). 1 


Aver- 
age per 
pound 
(cents). 2 


Other revenue. 


Total receipts from operation 


$37,380,307.64 
17,765,999.69 


$35,477,111.28 
* 16,861,710.31 


50.64 
24.07 


1.56 

.74 


3 $1,903,196.36 


Express privileges— Dr. (47.53 per cent 
of receipts from operation) 


6 904,289.38 






Total operating revenues 

Operating expenses (77.25 per cent of 
operating revenues) 


19,614,307.95 

15,151,337.42 

239,864.48 


4 18,615,400.97 

4 14,380,134.35 

4 227,655.38 


26.57 

20.52 

.33 


.82 
.63 
.01 


6 998,906.98 
'771,203.07 


Taxes (1.22 per cent of operating reve- 
nues) 


6 12,209.10 






Operating income (21.53 per cent 
of operating revenues) 


4,223,106.05 


4 4,007,611.24 


5.72 


.18 


6 215,494.81 







The average weight per revenue piece was 32.52 pounds. 

1 On basis of 70,063,750, the number of revenue pieces handled. 

2 On basis of 2,278,147,170 pounds, the aggregate weight of revenue pieces handled. 

3 Represents "Revenue from operations other than transportation" and "Miscellaneous transportation 
revenue" as defined in the Classification of Operating Revenues, and revenue from shipments of money, 
valuables, etc., not properly includible in tonnage report returns. 

4 Represents an arbitrary assignment on basis of ratio (94.91 per cent) of tonnage revenue to total receipts 
from operation. 

* Represents an arbitrary assignment on basis of ratio (5.09 per cent) of other revenue to total receipts 
from operation. 

Note.— Differences between items in the foregoing summary and corresponding items in Summary 
No. 3 are due to the fact that this statement presents combined returns from the 11 companies only from 
which complete reports both of revenues and expenses and of tonnage were received. 



POSTAL EXPEESS. 



77 



Appendix J. 
Classification of mileage covered by operations on June 30, 1909. 



Names of carriers. 



Total 
mileage. 



Steam road 
mileage. 



Electric 

line 
mileage. 



Steamboat 

line 

mileage. 



Stage line 
mileage. 



Adams Express Co 

American Express Co 

Canadian Express Co 

Canadian Northern Express Co 

Globe Express Co 

Great Northern Express Co 

National Express Co 

Northern Express Co 

Pacific Express Co 

Southern Express Co 

United States Express Co 

Wells, Fargo & Co 

Western Express Co 

Total 



34,360.00 

48, 224. 78 

7, 794. 27 

3, 129. 62 

1,899.85 

7,412.16 

1, 714. 25 

6, 757. 75 

22,672.54 

33,181.00 

24, 206. 00 

65, 698. 43 

3, 456. 39 



30, 676. 00 

45,668.08 

6,964.27 

3, 107. 62 

1,899.85 

7,031.57 

1,416.25 

6,488.75 

21, 721. 20 

30,936.00 

20, 286. 34 

59, 316. 90 

3,448.39 



196. 00 

475. 70 

66.00 

22.00 



3,405.00 

2,058.50 

737.00 



83.00 
22.50 
27.00 



169. 59 

6.00 

8.00 

343. 00 

80.00 

3,604.96 

1,438.76 

4.00 



211. 00 
292.00 
261. 00 
608. 34 

2,165.00 
314.70 

4,081.65 
4.00 



861. 12 



260,507.04 



238,961.22 



6,414.01 



14,138.19 



993. 62 



Appendix K. 

Cost of real property and equipment on June SO, 1908 and 1909. 

[Interstate Commerce Commission.] 



Account. 


Total cost to June 30 — 


1908 


1909 


I. Real estate used in operation 


}$14,562,641.07 
1 6,403,125.77 




II. Buildings and fixtures used in operation 


$14, 932, 169. 94 


III. Equipment: 

1. Cars 




2. Horses „ 




3. Vehicles 


7, 381, 405. 59 


4. Other equipment 








Total 


20,965,766.84 


22,313,575.53 





Appendix L. 

Statement showing inventory value of equipment owned on June 30, 1909. 

[Interstate Commerce Commission.] 

Total equipment, inventory value $9, 234, 071. 28 

Cars: 

Number '. 120 

Inventory value $232, 115. 69 

Office equipment: 

4-wheel trucks — 

Number 25, 485 

Inventory value $505, 570. 02 

Office furniture and fixtures — 

Inventory value $1, 135, 226. 45 

Office safes — 

Number 11, 610 

Inventory value $631, 662. 20 

Horses and other draft animals: 

Number 17, 332 

Inventory value $2, 499, 780. 65 

Vehicles: 

Automobiles — 

Number 256 

Inventory value $378, 240. 00 

Double wagons — 

Number 3, 667 

Inventory value $805, 571. 84 



78 POSTAL EXPRESS. 

Vehicles — Continued. 

Single wagons — 

Number ,. 9, 790 

Inventory value $1, 188, 635. 08 

Sleighs — 

Number 2, 878 

Inventory value $81, 032. 16 

Stable equipment (including harness): 

Inventory value $443, 296. 67 

Transportation equipment: 

Car safes (stationary) — 

Number 1, 403 

Inventory value $251, 756. 65 

Messenger's safes — 

Number 13, 765 

Inventory value $198, 108. 80 

Messenger's packing trunks — 

Number 23, 815 

Inventory value $178, 017. 06 

All other equipment: 

Inventory value $705, 058. 01 



Appendix M. 
Income account and profit and loss account statement for the year ending June 80, 1909* 

[Interstate Commerce Commission.] 
Operating income: 

Gross receipts from operation $132, 599, 190. 92 

Express privileges— Dr 1 64, 032, 126. 69 

Operating revenues $68, 567, 064. 23 

Operating expenses 56, 273, 055. 29 

Net operating revenues 12, 294, 008. 94 

Taxes accrued 906, 519. 79 

Operating income 11, 387, 489. 15 

Other income: 

Operations of subsidiary companies (net credit 
balance) 98, 058. 05 

Dividends declared on stocks owned and con- 
trolled 1, 887, 952. 03 

Interest accrued on funded debt owned or con- 
trolled 1, 393, 189. 89 

Interest on other securities, loans, and accounts. 1, 236, 957. 22 

Miscellaneous income 616, 310. 54 

Total other income . 5, 232, 467. 73 

Gross corporate income. .• 16, 619, 956. 88 

Deductions from gross corporate income: 

Operations of subsidiary companies (net debit 

balance) 7, 669. 64 

Interest accrued on funded debt 2 921, 246. 94 

Other interest 126,034.01 

Other deductions 182, 452. 71 

Total deductions 1, 237, 403. 30 

Net corporate income 15, 382, 553. 58 

Disposition of net corporate income: 

Dividends declared from current income l 4, 326, 939. 10 

Additions and betterments charged to income 34, 919. 71 

Miscellaneous appropriations 3, 000. 00 

Balance for year carried forward to credit of profit and loss 11, 017, 694. 77 

Balance June 30, 1908 45,400,925.34 

Additions for year 3, 642, 327. 49 

Deductions for year 7, 312, 628. 71 

Dividends declared out of surplus 2, 223, 089. 94 

Balance (credit profit and loss carried to balance sheet) 50, 525, 228. 95 

1 Includes $100,000, advance payment on contract. 2 Represents interest paid. 



POSTAL EXPKESS. 



79 



Appendix N. 
Analysis of operating revenues for the year ending June SO, 1909. 
[Interstate Commerce Commission.] 

I. Revenue from transportation: 

1. Express revenue $130,130,126.61 

2. Miscellaneous transportation revenue 35, 475. 64 

Total revenue from transportation 130, 165, 602. 25 

II. Revenue from operations other than transportation: 

3. Customhouse brokerage fees 4, 672. 73 

4. Order and commission department 4, 672. 73 

5. Rents of buildings and other property 57, 141. 04 

6. Money orders — domestic \ RKA r^n 7Q 

7. Money orders— foreign / <>M, &4U. 78 

8. Traveler's cheques — domestic 16,473. 90 

9. Traveler's cheques — foreign 46, 606. 46 

10. "C. O. D. "checks 908,094.29 

11. Telegraphic transfers 14,026.93 

12. Letters of credit 6, 961. 97 

13. Other revenue — financial department 476, 298. 41 

14. Miscellaneous revenue • 130, 064. 37 

Total revenue from operatioDs other than transpor- 
tation 2,433,588.67 

Gross receipts from operation 132, 599, 190. 92 

Express privileges— Dr 1 64, 032, 126. 69 

Total operating revenues 68,567,064.23 



Appendix O. 

POSTAL EFFICIENCY TABLE, UNITED STATES. 

Number pieces mail matter handled per post-office employee. 



Years. 



Employees. 



Pieces handled. 



Average 

per 
employee. 



1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896 • 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 
1908. 
1909. 



162,708 
171,676 
178,835 
184,217 
184,607 
195, 720 
198,605 
204,304 
210,896 
216,751 
218,857 
226,825 
239,652 
241,820 
251,515 
238,366 
268,044 
251,458 
255,344 
258,200 



4,005, 

4,369, 

4,776, 

5,021, 

4,919, 

5,134, 

5,693, 

5,781, 

6,214, 

6,576, 

7,129, 

7,424, 

8,085, 

8,887, 

9,502, 

10,187, 

11,361, 

12,255, 

13,173, 

14,004, 



408,206 
900,352 
575,076 
841,056 
090,000 
281,200 
719,192 
002,143 
447,000 
310,000 
990,202 
390,329 
446,858 
467,048 
459, 535 
505,889 
090, 610 
666,367 
340,329 
577,271 



24,611 
25,459 
26,708 
27,262 
26,646 
26,235 
28,550 
28,296 
29,466 
30,340 
32,569 
32,734 
33,734 
36,752 
35,793 
42,739 
42,385 
48,738 
51,591 
54,239 



i Includes 3100,000 advance payment on contract. 

3 The first experimental rural delivery service was established Oct. 1, 1896, simultaneously on three routes 
from Charles Town Uvilla, and Halltown, W. Va. 



In 1900 there were reported 76,688 post offices and 1,276 rural carriers, 
reduced to 59,580 with 40,997 rural carriers. 



In 1910 the post offices had been 



80 



POSTAL EXPKESS. 

Appendix P. 
Pieces of mail matter handled per post-office employee. 

ENGLAND. 



Years. 



Personnel. 



Pieces 
handled. 



Average 
per em- 
ployee. 



1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 



117,989 
125,762 
1131,459 
U36,lll 
1138,738 
1140,806 
1 144, 700 
1151,110 
1159,942 
1167,086 
1173,184 
1179,202 
1183,595 
1188,031 
1192,454 
1 195, 432 
1 199, 278 
1203,597 
1207,947 



2,622,839,636 
2,715,316,605 
2, 783, 976, 234 
2,852,190,235 
2,907,235,941 
3,028,787,728 
3,139,866,228 
3,316,683,018 
3,494,307,224 
3,586,277,477 
3,720,735,902 
3,915,633,854 
4,140,614,292 
4,297,474,401 
4,475,877,113 
4,682,322,120 
4,687,592,176 
4,795,110,105 
4,853,088,929 



22, 230 



28,775 



28,646 



31,945 

3i*ii7 



FRANCE. 



1890, 
1891, 
1892, 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 



162,200 
i 57, 570 
157,828 
i 64, 143 
167,092 
168,066 
168,366 
169,142 
170,269 
171,330 
174,929 
177,581 
181,659 
182,387 
183,735 
185,282 
193,759 
1100,449 
i 102,374 



1,613,648,252 
1,656,594,153 
1,690,065,382 
1,747,105,412 
1,755,492,308 
1,822,203,228 
1,926,840,499 
2,065,375,716 
2,172,677,054 
2,092,460,752 
2,152,873,380 
2,023,995,229 
2,158,295,671 
2,238,081,437 
2,409,533,445 
2,685,082,091 
2,877,243,955 
2,862,265,894 
2,936,209,275 



34,590 



35,700 



38,309 



41,958 
*38*24i 



GERMANY. 



1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1890 
1899 
1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 



1129,945 
1148,594 
i 155, 424 
i 162, 779 
1168,334 
U75,759 
1183,212 
1190,919 
1199,013 
1208,441 
1222,809 
i 233, 176 
1241,967 
1251,042 
1 263, 517 
i 279, 598 
2 298,276 
2 314,251 
2 326,703 



1,684,740,690 
1,785,690,900 
1,889,500,218 
1,986,791,353 
2,095,098,346 
2,101,349,063 
2,329,228,275 
2,489,069,635 
2,639,115,653 
2,880,389,112 
3,434,357,576 
3,699,187,757 
3,965,627,748 
4,242,157,259 
4,439,285,948 
4,647,055,089 
5,014,587,587 
5,448,330,959 
5,641,324,858 



17,287 



15,638 



20,552 



22,160 
"25,"90i 



i The figures for the personnel include telegraph employees. In all such cases one-fourth of the total 
number of employees has been deducted from the total number In making the computation of the number 
of pieces handled per employee per annum. 

2 The figures for the personnel here include telegraph and telephone employees. In this case one-third 
of the total number of employees has been deducted from the total number in making the computation 
of the number of pieces handled per employee per annum. 



POSTAL. EXPRESS. 



81 



Appendix Q. 

General Post Office, 

London, April 8, 1911. 

Sir: With reference to your letter of the 6th of March, asking for certain statistical 
information relative to the postal system of the United Kingdom, I am directed by the 
postmaster general to inform you that in this department the same officer frequently 
performs postal, telegraph, and telephone duties, so that it is not possible to give the 
numbers of the separate classes engaged on each of these branches of work. 

The amount paid in salaries or wages is, however, apportioned, for purposes of 
account, in accordance with the estimated time given to each branch, the figures for 
the financial year ending the 31st of March, 1910, being as follows: 

Postal , £9,184,578 

Telegraphs 2,611,198 

Telephones 422,867 

These figures will, it is hoped, suffice for your purpose. 
I am, sir, your obedient servant, 

F. J. Brown 
Mr. David J. Lewis. (For the Secretary). 

Appendix R. 

COST OF TRANSPORTING AND HANDLING MAIL MATTER, ETC. 

Revenue, expense, and profit or loss per pound and per piece for the several classes of mail, 

United States. 

[Post Office Department.] 



Classes of mail. 



Revenue 

per 
pound. 



Expense 

per 
pound. 



Profit 

per 

pound. 



Loss per 
pound. 



First 

Second 

Third 

Fourth 

Congressional free (franked) . 
Departmental free (penalty) . 
Foreign 



, 84001 
,01143 
, 12711 
, 16867 



, 15879 



, 49923 
.09235 
. 14317 
.12308 
. 11441 
. 12113 
. 11246 



SO. 34078 






$0. 08092 




.01606 


. 04559 






.11441 




. 12113 


.04633 





Classes of mail. 



Pieces 

per 
pound. 


Revenue 

per 

piece. 


Expense 

per 

piece. 


Profit 

per 
piece. 


45.10 
4.80 
8.56 
3.16 
1.99 
5.38 

10.32 


$0. 01%2 
. 00238 
. 01485 
. 05337 


$0. 01107 
.01923 
.01672 
.03895 
. 05754 
. 02252 
.01090 


$0. 00755 




.01442 






.01538 


.00448 



Loss per 
piece. 



First 

Second 

Third 

Fourth 

Congressional free (franked) . 
Departmental free (penalty) 
Foreign 



.01685 
. 00187 



. 05754 
. 02252 



Appendix S. 



PARCELS-POST RATES IN THE DOMESTIC SERVICE IN THE COUNTRIES NAMED. 

[By Postmaster General Meyer.] 

Great Britain. — Postage rates for the first pound, 3 pence (6 cents), and for each 
additional pound, 1 penny (2 cents); maximum weight, 11 pounds; greatest length, 
3 feet 6 inches; greatest length and girth combined, 6 feet. 

New Zealand and the States composing the Commonwealth for Australia. — Limits of 
weight and size, same as in Great Britain. Postage rate, 6 pence (12 cents) for the 
first pound, and 3 pence (6 cents) for each additional pound. 

Germany. — Greatest weight, 50 kilograms (about 110 pounds); no limit of size. 
Postage rates: For all parcels conveyed not more than 10 geographic miles, 25 pfennig 
(6 cents), and 50 pfennig: (13 cents) for greater distance; if a parcel weighs more than 

S. Doc. 379, 62-2 6 



82 



POSTAL EXPRESS. 



5 kilograms (11 pounds average) it is charged for each additional kilogram (2 pounds) 
carried 10 miles, 5 pfennig (1 cent); 20 miles, 10 pfennig (3 cents); 50 miles, 20 pfennig 
(5 cents); 100 miles, 30 pfennig (8 cents); 150 miles, 40 pfennig (10 cents); and more 
than 150 miles, 50 pfennig (13 cents). Unwieldy parcels are charged in addition 50 
per cent of the above rates. 

Austria. — Greatest weight, 50 kilograms (110 pounds); except that parcels contain- 
ing gold or silver coin may weigh up to 65 kilograms (143 pounds). Postage rates: 
Parcels up to 5 kilograms (11 pounds) in weight are charged 30 heller (6 cents) for the 
first 10 miles and 60 heller (12 cents) for greater distances. A parcel weighing more 
than 5 kilograms (11 pounds) is charged for each kilogram (2 pounds), in addition to the 
above rates, for the first 10 miles, 6 heller (1 cent); 20 miles, 12 heller (2 cents); 50 
miles, 24 heller (5 cents); 100 miles, 36 heller (7 cents); 150 miles, 48 heller (10 cents); 
and more than 150 miles, 60 heller (12 cents). 

France. — Greatest weight, 10 kilograms (about 22 pounds); no limit of size. Postage 
rates: Up to 3 kilograms (7 pounds), 60 centimes (12 cents) delivered at the railway 
station and 85 centimes (17 cents) delivered at a residence; from 3 to 5 kilograms 
(7 to 11 pounds), 80 centimes (16 cents) at a station and 1 franc 5 centimes (21 cents) 
at residence; from 5 to 10 kilograms (11 to 22 pounds), 1 franc 25 centimes (25 cents) 
at a station and 1 franc 50 centimes (30 cents) at a residence. 

Belgium. — Greatest weight, 60 kilograms (about 132 pounds); no limit of size, but 
unwieldy parcels are charged 50 per cent in addition to the following rates for any 
distance: Parcels up to 5 kilograms (11 pounds), 50 centimes (10 cents) — or if by 
express trains, 80 centimes (16 cents); up to 10 kilograms (22 pounds), 60 centimes 
(12 cents) — or if by express trains, 1 franc (20 cents); for each additional 10 kilograms 
(22 pounds), 10 centimes (2 cents) — or if sent by express trains, 50 centimes (10 cents) 
additional. Fee for delivering at residences, 30 centimes (6 cents). 

Italy. — Greatest weight, 5 kilograms (11 pounds). For ordinary parcels, greatest 
size in any direction, 60 centimeters (2 feet), except rolls, which may measure 1 meter 
(40 inches — 3 feet 4 inches) in length by 20 centimeters (8 inches) in thickness. Post- 
age rates for a parcel not exceeding 3 kilograms (7 pounds), 60 centimes (12 cents); 
and 1 franc (20 cents) for a parcel exceeding that weight. A parcel which exceeds 60 
centimeters (2 feet) in any direction, but does not exceed 1£ meters (5 feet), is admitted 
to the mails as an "unwieldy" parcel, and is charged, in addition to the above rates, 
30 centimes (6 cents) if it does not weigh more than 3 kilograms (7 pounds), and 50 
centimes (10 cents) if it exceeds that weight. 

The Netherlands. — Greatest weight, 5 kilograms (11 pounds); greatest size, 25 cubic 
decimeters (1,525 cubic inches), or 1 meter (3 feet 4 inches), in any direction. Postage 
rates: 15 (6) cents (Dutch) up to 1 kilogram (2 pounds); 20 (8) cents from 1 to 3 kilo- 
grams (2 to 7 pounds); 25 cents (10) from 3 to 5 kilograms (7 to 11 pounds). 

Chile. — Greatest weight, 5 kilograms (11 pounds); must not measure more than 60 
centimes (2 feet) in any direction. Postage rates: 30 centavos (10 cents) if a parcel 
does not weigh more than 3 kilograms (7 pounds); 50 centavos (17 cents) if it weighs 
more. 

Cuba. — Greatest weight, 11 pounds; greatest size, 3 feet 6 inches in length by 2 feet 

6 inches in width. Postage rates: 10 centavos (10 cents) a pound up to 5 pounds, 
and 6 centavos (6 cents) for each additional pound. 



Appendix T. 
Table of express and freight weights in different countries, with ratios, etc. 



Countries. 



Year. 



Population. 



Number 
of express 

pounds 
per 

capita. 



Number 
of freight 

pounds 
per 

capita. 



Ratio of 

express 
weight 

to 
freight. 



Argentina 

Austria 

Belgium i 

Germany 

Hungary 

France 

United States 



1909 
1908 
1909 
1908 
1908 
1908 
1909 



6,460,428 
28,032,556 

7,295,963 
63,017,000 
20,866,184 
38,961,945 
92,000,000 



165.4 
116.6 
U99 
140.4 

67.8 
140.6 

99 



10,680 

11,260 

116,320 

15,980 

5,540 

7,480 

16,300 



64 
97 



il :82 



113 
84 
53 
165 



Includes 214 miles of privately owned railway. 



POSTAL EXPRESS. 83 

Denmark, Norway, and Netherlands not included because complete freight and 
express tonnage of State owned and private owned railways are not available. Eng- 
land gives no express data, and the same is true of Australasia. 

The express weights do not include the weights of the parcels carried by mail in 
any case. 

Appendix TJ. 

THE PARCELS-POST SYSTEM OP GERMANY. 

[Written for Dunn's Review of Feb. 24, 1906, by Hon. J. C. Monaghan, of the Department of Com. 

merce and Labor, Washington, D. C.J 

Among the greatest needs of the present day is a better development of the means 
of distribution. Much of the overproduction, of which so many complaints are heard, 
is simply due to lack of distribution. Among the modern methods of distributing 
merchandise the post holds a rank scarcely dreamed of in the days of the first American 
Postmaster General, Benjamin Franklin. Even his genius hardly foresaw the day 
when the packages of the merchant and tradesman would be carried by the postman. 
The best example of a successful parcels-post system to enable a business man to form 
a just idea of it is the German system, which the writer saw in operation for 12 years. 
The gigantic genius that forged and welded the fragments of the Empire into one 
cohesive mass — Bismarck — did as much as anyone to give the Empire a postal system 
so successful that it excites envy and emulation. In a year, 1903, it netted the Empire 
nearly $15,000,000 over and above all expenditures, while the American service 
showed a deficit of $4,356,000. 

WELDING THE CITIES TO THE FARMS. 

Not the least successful branch of the system — certainly not the least useful part — is 
that which deals with parcels or packages of all kinds of products, from those of the 
farm or ranch to those of the factory or department store. From the huge streams of 
wares that flow through the post offices of Berlin, Hamburg, and the larger towns 
and cities, as well as the tiny rivulets of articles that are put into the parcels post in 
remote Tyrolese hamlets and in thousands of country offices, is formed a veritable 
ocean or sea of traffic. The yellow wagons of the Empire or the royal wagons of King- 
doms like Wurttemberg and Bavaria that have held on to their separate postal rights, 
wind their way in and out of the highways and byways of the entire Empire, pick- 
ing up and laying down wares. Anyone may participate in the benefits of the Ger- 
man parcels-post system — that is, anyone who is willing to conform to its regulations 
regarding fulminates, living creatures, the making out of cards, etc. A mother in the 
south may make up a parcel or package of food, linen, and other articles and send it 
to her boy in Berlin for a trifling sum. A traveler may pick up bits of bric-a-brac in 
the hills and have them mailed to some central city for a few cents, or he may leave 
his linen to be washed and have it forwarded to some place on his itinerary for no 
more than he would expect to pay a porter to carry it to his hotel. Nor has the house- 
wife any inconvenience; the yellow wagon with its royal eagles will call to pick up 
the parcels as well as to deliver them, charging nothing for calling and only a trifle 
for the collecting. 

A SIMPLE MAIL-EXPRESS SHIPPING SYSTEM. 

A card about 4 by 6 inches has to accompany every package. In case of goods 
going to one address, three packages, unless insured, registered, or sent c. o. d., may 
be covered by one card. This indicates the disposition of the country to make the 
postal service not only convenient, but as inexpensive as possible. When insured, 
registered, or sent c. o. d. , each package must have its own card. Every card is divided 
into two parts. On the extreme left is a strip for the address of the sender, the stamp 
of the receiving office, and for the name of the party to whom the goods are sent. 
This part is torn from the card and is retained at the receiving office and constitutes 
an excellent reference record in case of loss or trouble. On the other part is put the 
name of the person for whom the goods are intended, the stamp or stamps necessary 
to send it, a space for the number of packages sent, the weight of the package as deter- 
mined by the post-office scales, and a number corresponding with one marked upon 
the package itself and given serially. On the back of the card are spaces for a short 
message to the receiver, for a storage number to be used in case the package has to bo 
laid away till called for, or for instructions in regard to delivery; also space for the 
signature of the receiver. Besides all this there are printed instructions as to how 
the card is to be used and certain important points in the parcels-post regulations. 



84 POSTAL EXPKESS. 

These cards cost the price of the stamp on them when stamped, or four for 1 cent, 
unstamped. Private parties may make and use their own cards provided they supply 
themselves with exact imitations of those furnished by the Government. 

The package has to correspond in every particular of its address to the form used 
on the card. It must indicate by the word "frei," or "franco," corresponding to 
our word free, that postage has been paid, or that it is "eingeschrieben," registered, 
or "per Eilbote zu bestellen," to be delivered by special messenger, etc. In case 
the package, as frequently happens, contains animals, living or dead, or any perishable 

commodity, the card must contain instructions to "return to if not delivered," 

or "if not delivered, sell," or "if not delivered, telegraph sender." And "the beauty 
of it all," as a traveling American once put it, "is that the Imperial Government does 
exactly as it is told or asked to do." The address must be written in full; must be 
perfectly plain, both as to names and numbers. In case a consignment is insured, 
that fact must be put upon the package as well as upon the card. Light objects of 
little value, such as can stand pressure and which will not cause dirt or any kind of 
inconvenience, may be put up in ordinary packing paper. All parcels above 6 
pounds must be put up in several wrappings of heavy paper. Valuable parcels, 
particularly those that are easily moistened, crushed, or injured by rubbing, must 
be covered with oilcloth or pasteboard, or must be packed in boxes; in other words, 
care must be taken to so cover them as to secure a minimum of danger. Fluids shipped 
in bottles or flasks must be carefully packed in cases or baskets. Living creatures 
must be so packed as to protect the animal from discomfort, at least reasonably so, 
and to make sure of no injury or danger of injury to the post-office officials or parties 
whose duty it is to handle the packages. The wrapping, tying, sealing, etc., of the 
packages must be such as to secure its contents from unwarranted examination. 
Packages that are insured must be carefully sealed with sealing wax and legibly 
stamped. If the parcel or package is one that is sent in a locked box case, or cask, 
the sealing is not, as in the other cases, indispensable. Coin, paper, money, bonds, 
and other valuable paper may be sent by the parcels post, but they are sent under 
special regulations. 

IN THE MATTER OE URGENCY. 

The only regulation in the system to which any exception can be taken is the one 
that says the parcels must be forwarded by the accommodation trains, and not by 
the limited or fast ones. This is doubtless due to the fact that delivery of so many 
packages would inevitably and inordinately delay the fast trains. Exception, how- 
ever, might have been made in favor of live animals, fresh fish, perishable fruits, 
and flowers, for in all of these there is an immense traffic. Perhaps it is pertinent to 
remark here that the payment of $0,338 will secure the shipment of such parcels on 
fast trains and special delivery at point of destination. Shipments of an urgent 
character, if marked as such, may not be registered or insured. They must, however, 
bear the word urgent ("dringlich") in large letters on a card of a particular color, 
the address being clear and unmistakable. In ordinary towns parcels are delivered 
twice a day; in large cities oftener. In case the card calls for a special delivery the 
package is hurried to its destination by a special messenger. This service calls for 
10 cents extra if the delivery is inside city limits and 22 cents if it is beyond them. 
In some cases notice only of the arrival of the package is given by special messenger, in 
which case the charge is the same as for the special delivery of ordinary letters or 
money orders — 5 cents inside the city, 15 cents outside. If the sender pays for the 
special messenger he must indicate that he has done so by putting "Bote bezahlt" 
(messenger paid) on the parcel and accompanying card. In case no special delivery 
is demanded or possible, the package is delivered in the ordinary way by the regular 
parcels-post wagon. 

A BUSINESSLIKE DELIVERY SYSTEM. 

The delivery charge differs in degree, depending upon distance. For example, 
parcels up to 11 pounds pay 2\ cents inside city limits; for rural delivery the charge is 
2\ cents, for packages under 5£ pounds and 5 cents for all others that are within the 
weight permitted for parcels. Heavier parcels — that is, parcels of more than 5 pounds — 
for city delivery pay 3£ cents per parcel. In case the card covers three packages, the 
limit allowed to one card, there is a charge of 3£ cents for the heaviest and \\ cents 
for each of the other two. When the goods have to be carried into the country (rural 
delivery) the charge is 2\ cents for each parcel weighing less than 5$ pounds and 5 
cents for every other parcel permitted to go by parcels post. Careful, sensible, sys- 
tematic, and businesslike are the only words that will properly describe this wonderful 
system and its successful work. In the matter of city -deli very fees much is left to 
local authorities; the general-delivery fees, however, are determined by the central 



POSTAL EXPKESS. 85 

postal authorities. A very large part of the postal parcels are carried to the post office 
by boys and girls, private messengers, servants, and by the parties sending the wares. 
As already indicated, the parcels-post wagon is always ready to call. It has its regu- 
lar rounds each day, and may be called by a card addressed to the bureau or division 
having charge of the wagons. Of course, such a card should be sent to reach head- 
quarters before the wagons start on their daily trips. A parcel may be carried to a 
wagon long after it has passed the locality in which the sender resides. It will be 
taken by the conductor of the wagon, for each wagon has a conductor and driver. 
The charge for collection is the same as the charge for delivery, 2£ cents inside the 
city limits and 3^ cents for collections in the country, or outside city limits, in the 
so-called rural zones, for parcels weighing less than 5£ pounds, and 6£ cents for heavier 
parcels up to the limit allowed by law. In case the carrier can not deliver a parcel 
the sender is notified and asked for instructions, a charge of 5 cents being made for 
the notice. As already pointed out, if a sender has doubts about the acceptance or 
ability of the carrier to deliver, he can make provision for its delivery or disposition 
on the accompanying card. 

CHARGES THAT MAKE BUSINESS GROW. 

The one vital factor in a system of this kind is the charge. If it is too high it defeats 
the object at which it aims — public convenience. In all its efforts to secure efficiency 
the German Empire has always aimed at a system such as would secure that result 
at a moderate cost. Its success has been fairly phenomenal, for its charges have been 
moderate, the service the very acme of efficiency. As already suggested, distance 
and weight form the factors in the problem of price for the service. The distance 
charges are determined by zones, the first zone or circle within which the lowest 
price is paid being 10 geographical miles from the post office as a center; the second 
zone all points beyond the 10-mile limit, but within 20 miles; the third, the points 
between the 20 and a 50 mile circle; the fourth, between 50 and 100; the fifth, between 
100 and 150; the sixth and last, all points in the Empire beyond a circle 150 miles 
from the post office or center. For lighter parcels — those weighing less than 11 
pounds — only two zones are marked off, the 10-mile zone and those parts of the Empire 
beyond the 10-mile boundary. For such parcels the charge is 6 cents for the inside 
and 12 cents for the outside zones; for parcels weighing over 11 pounds an extra 
charge is made upon every extra 2.2 pounds or kilogram. The packages are weighed 
before admission, and are accepted up to 110 pounds each. In case the sender fails 
to prepay the postal charges, a fine of 2\ cents is levied on parcels that do not weigh 
more than 11 pounds; in case of heavier packages no fine is levied. The purpose 
of this regulation is to effectively reduce the number of unpaid parcels under 11 

Eounds, for these make up the major part of the parcels posted. Light packages, 
ut of large size — say, cases containing bonnets, flowers, feathers, etc., or delicate, 
easily destroyed commodities — come under a specific classification. They are classed 
by cubic contents. As soon as a package exceeds 59 inches in any one dimension it is 

Eut in this class; also parcels that measure 39.37 inches one way and 19.68 in another, 
ut weigh less than 22 pounds. In this class fall plants in baskets sent all over the 
Empire by nurseries, hat and bonnet boxes, furniture, fancy baskets, boxes, Black 
Forest or Tyrol clocks and carvings, cages, empty or containing animals, etc. Such 
parcels pay 50 per cent more than the regular rates, insurance fees not included in 
the estimate. Parcels of great value are usually insured , the charges being exceedingly 
small — 2\ cents for all parcels under $142.80, with 1.19 cents additional for each 
$71.40; in other words, a parcel worth $357 pays, when insured, for such insurance 
5.95 cents, practically 6 cents; a parcel worth $1,428 is insured for 23.8 cents, etc. 

CHEAP AND QUICK TRANSPORTATION MAKES FOR GENERAL PROSPERITY. 

How much the parcels post has meant in the past, how much it means now, and 
how much it is to mean in the Empire's marvelous development will never be known 
till some German Mulhall makes its work the subject of a brilliant special monograph. 
From the far-off shores of Heligoland and the North Sea fishing villages the products 
of the deep are collected, carried across a large part of the Continent, and delivered, 
the service extending to the confines of Bohemia or even to Austria and Hungary, 
for there is a postal arrangemem between the two Empires that admits all the benefits 
of the one to the citizens of the other. From the seaport cities come the bananas, 
oranges, lemons, pineapples, coconuts, the rich spices of the East, the finer fibers 
and textiles of Persia, India, China, and Japan; from Switzerland come the rich 
dairy products and marvelous honey gathered from its mountain flowers, a honey as 
rich as that of Hymettus; from the Rhine lands the wines are sent in baskets far beyond 
where the vine will grow; out of the south, by Botzen, on the hills near Innsbruck, 



86 



POSTAL EXPRESS. 



and along Lake Garda go fruits and flowers to Berlin and Breslau, Konigsberg, Dan- 
zig, and Stettin. A message by wire, in case of a run on fruits or flowers, will be filled 
in 24 or 48 hours — the entire order, including the telegram, costing from 25 cents to 
$1, the latter price being exceptional, incurred only when the parcel exceeds 50 
pounds. Under the 11-pound policy for 12 cents enormous shipments have been 
made and are being made. This rate is the popular one. 

Germany's advantages over the united states. 

Business men, bankers, merchants, manufacturers, and the people are unanimous 
in praise of the imperial parcels post. All regard it as indispensable. All wonder 
how they ever got along without it. The rates from the empire to neighboring nations, 
particularly to those with whom Germany has arranged postal treaties, are exceedingly 
low. As already indicated, the rates to Austria are the same as those laid down by 
law for Germany, and parcels for Egypt and through Switzerland and Italy pay only 
52 cents for 11 pounds. Parcels for the United States cost 33 cents if 1 kilogram or 
2.2 pounds; from 2.2 to 11 pounds, 33 to 88 cents, depending upon weight, distance, 
delivery, etc. In all cases care must be taken first to find out the terms of the law. 
This may be done by reading the rules and regulations. Certain requirements are 
exacted in the case of goods going into a country that exacts tariff duties. In the case 
of our own country, the law requires the making out of two declarations, covering the 
cost, in addition to the card. In the matter of size, no package must be over 41.24 
inches or 105 centimeters long, and the circumference must not go beyond 70.87 
inches (180 centimeters). The charge for packages ranging from 1 kilogram (2.2 
pounds) to 4.4 pounds is 26 cents; for each 22.046 pounds or fraction thereof an addi- 
tional charge of 13 cents is made. The rate for 220.46 pounds (100 kilograms) is 
$1.31. As regards the imperial parcels-post system as a whole, Germany's method of 
meeting the new economic, industrial, and commercial era upon which it has entered 
is one that is sure to commend itself in time to the thoughtful statesman. 



Appendix V. 

Table showing the apportionment of expenditures for railroad transportation for 
the fiscal year 1908 to each class of mail matter and to the registry service, 
based upon the weight and average haul of the mail, equipment, and empty 
equipment. 



Item. 


Weight of 
mail trans- 
ported. 


Average 

haul of 

mail. 


Pound-miles 
for mail. 


Weight of 
equipment 
transported. 


Average 
haul of 
equip- 
ment. 


Pound-miles 
for equipment. 


Classes of mail: 


Pounds. 1 
118, 126, 958 
772, 159, 614 
6,747,857 


Miles. 
507 
610 
881 


59,890,367,706 

471,017,364,540 

5,944,862,017 


Pounds. 
235, 716, 813 

84,862,824 

113,521,045 

6, 120, 977 

5,126,081 

40,073,424 

5,433,984 
8,289,168 


Miles. 
401 

401 
401 
401 

401 

401 

401 

5 507 


94,522,442,013 


To Canada 




Totalsecond class 


778, 907, 471 

168,266,074 

56,168,710 

4,459,942 

38, 524, 672 
2 8, 512, 789 


476,962,226,557 

113,074,801,728 

38,587,903,770 

3,344,956,500 

30,126,293,504 

24,568,802,000 


34, 029, 992, 424 


Third class 

Fourth class 

Congressional free 

(franked) 

Departmental free 

(penalty) 


672 
687 

750 

782 

<620 


45,521,939,045 
2,454,511,777 

2,055,558,481 

16,069,443,024 


Foreign 


30,011,883 
3 39, 627, 100 


2,179,027,584 


Special service: 

Registry 


4,202,608,176 












Total 


1,204,080,927 




746,555,351,765 


499,144,316 




201,035,522,524 











i Estimated upon the special weighing figures, after deducting the weight of local domestic mail matter 
and foreign mail receiving no railroad transportation. 

2 Amount of mail dispatched from stamped-envelope agency without equipment. 

3 Less second class to Canada. 

* Average haul of all classe. of mail matter, paid and free. 
6 Average haul of first-class matter. 



POSTAL EXPRESS. 



87 



Table showing the apportionment of expenditures for railroad transportation for 
the fiscal year 1908, etc. — Continued. 



Items. 


Weight of 
empty 

equipment 
trans- 
ported. 


Average 
haul of 
empty 
equip- 
ment. 


Pound-miles 

for empty 

equipment. 


Total pound- 
miles for mail, 
equipment, and 
empty equip- 
ment. 


Per cent 

of each 

item. 


Expendi- 
tures for 
railroad 
transporta- 
tion appor- 
tioned to 
each class 
and service 
named. 


Classes of mail: 

First class 


Pounds. 

33,246,361 

11,974,440 

16,013,846 

862,652 

718,877 

5,648,321 
1,697,073 

1,169,857 


Miles. 
346 
346 
346 

346 

346 

346 
346 

346 


11,503,240,906 

4, 133, 156, 240 

5,540,790,716 

298,477,592 

248,731,442 

1,954,319,066 
587,187,258 

404,770,522 


165,916,050,625 

515,125,375,221 

164,137,531,489 

41,340,893,139 

5,649,246,423 

48,150,055,594 
27,335,016,842 

4,607,378,698 


17.07 

52.99 

16.88 

4.25 

.58 

4.95 
2.81 

.47 


$7, 556, 463. 47 


Second class 

Third class 

Fourth class 

Congressional free 

(franked) 

Departmental free 

(penalty) 

Foreign 


23,457,352.03 
7,472,355.20 
1,881,369.05 

256, 751. 54 

2,191,241.60 
1,243,916.95 


Special service: 

Registry 


208,057.29 






Total 


71,331,427 




24,670,673,742 


972,261,548,031 


100.00 


44,267,507.13 









The increase in the mail for 1910 over 1908 was 12.7 per cent in number of 
pieces, which, assuming the haul, mail pieces, and equipment weight to corre- 
spondingly increase, would equal — 

1910, railway mail pound-miles 1, 095, 738, 764, 630 

Or, railway mail on-miles 547, 869, 382 

3910, number tons mail and equipment 1, 260, 000 

1910, average journey mail and equipment miles 435 

1910, total railway pay $49, 405, 311. 27 

1910, total railway pay per ton-mile cents 9. 02 

The railways are paid upon a sliding scale, by which the compensation per 
mile of railway decreases as the daily weights increase, from 211 pounds up to 
48,000 pounds, at which latter weight the compensation per mile becomes sta- 
tionary, however much greater the daily weight. The following statement of 
the postal department shows the amounts of railway payment for each 
" weight " class : 

Railroad mail routes in operation July 1, 1908- 





Number of routes. 


Totals. 


Classes. 


First 
section. 


Second 
section. 


Third 
section. 


Fourth 
section. 


Number 
of routes. 


Annual 
weights. 


Annual 
compensa- 
tion. 


211 pounds and under.. 

212 pounds to 519 
pounds 


284 

203 

246 

71 

77 
14 


188 

120 

106 

27 

49 
2 


235 

167 

231 

86 

128 
19 


319 
201 
258 

88 

111 
4 


1,026 

691 

841 

272 

365 
39 


49,665,468 

87,363,834 

314,788,182 

320,768,622 

1,929,454,278 
1,946,293,572 


$948,827.39 

1,256,212.90 

5,196,869.53 

4,594,702.63 

17,505,930.15 


520 pounds to 2,059 
pounds 


2,060 pounds to 5,079 
pounds 


5,080 pounds to 48,000 
pounds 


Over 48,000 pounds 


15,296,296.35 




895 


492 


866 


981 


3,234 4,648,333,956 


44, 798, 838. 95 



88 POSTAL EXPRESS. 

The gross weight of over 4,000,000,000 pounds represents a duplication of 
the weighings of something over 80 per cent in the different sections, so that 
the pound totals in the last table are only useful for their proportions in 
classes. 

The " over 48,000 pounds " class represents 41.9 per cent of the total weight 
and 31.9 per cent of the railway compensation, to which latter must be added 
the amount paid for post-office cars, which in 1910 was $4,780,614.19. Of 
this amount, 54.12 per cent was paid to the " over 48,000 pounds " class. The 
total railway payment for this class was, therefore — 

Annual compensation $15, 296, 296. 35 

Post-office car space, " over 48,000 pounds " class 2, 503, 502. 64 

17, 799, 798. 99 

Weight, in tons, 48,000 pounds class 527, 940 

Ton-miles, 48,000 pounds class 229, 633, 900 

Compensation per ton-mile, 48,000 pounds class cents 7. 75 

Any parcels-post method giving rates as low as are feasible would double or 
treble the total weight of the mails and thus place practically all routes on the 
minimum, or 7.75 cents per ton-mile, basis of payment. The equipment weight, 
now about one-fourth of the weights paid for, would be inconsiderable for 
parcels, as it consists of bags only, which bear a substantial ratio to the weight 
of their mail contents. The " car space " requirements, too, of the parcels ought 
to be much less than that of mail matter. Since the transportation loading 
would be by zones embracing not less than 25 miles to 100 miles and the 
payments to the railways by miles, a considerable increment would fall to the 
transportation fund from this source. On the whole, the assumption of 8 
cents a ton-mile for railway pay under a parcels-post method, with rates suffi- 
ciently adapted to secure traffic, appears to be justified. 

Incidentally it may be observed that the reduction of all postal railway to the 
"over 48,000 pounds" basis would save the postal department 14.1 per cent 
of its 1910 payment, or $6,951,612.59 out of the total railway pay of $49,302,217. 



Appendix W. - 

AN AGRICULTURAL PARCEL POST. 
[Nineteenth Century, vol. 53, p. 253.3 

The object of the writer of this article is not so much to entertain the reader as to 
attempt to show how the income of the United Kingdom may be immediately increased 
by at least 60,000,000 sterling, distributed among a class of men who are admitted to 
be the backbone of the community, but whose fate it seems to be to suffer from the 
prosperity of their fellows. There is but one class which can be thus described — the 
agricultural. There is but one remedy suggested for its misfortunes — an agricultural 
parcel post. 

Not that the post office can do all that is required. The official Hercules will cer- 
tainly expect the depressed cultivator to put a shoulder to the wheel. The postmaster 
general is nowise responsible for the enterprise of trans- Atlantic farmers or the cutting 
of trans-Atlantic freights. So long as the British farmer acts on the theory that his 
land will produce only one thing, which he can not sell at a profit, nobody, not even 
Hercules, can help him. For as against stupidity "the gods themselves contend in 
vain." But if he will grow that which is highly profitable and which the post office 
alone (without injury to its revenue) can bring to market, then it is clearly the duty 
of the post office to place its machinery at his service. It is worth while to examine 
with an impartial mind the facts and arguments for and against postal intervention. 

WHAT WE ARE LOSING — IN ACRES. 

There are in the United Kingdom 77,667,959 acres, of which 29,917,374 acres are 
uncultivated. Of the uncultivated portion, 1,225,000 acres were cultivated 11 years 
ago, when I brought the matter before Mr. Raikes; 806,872 have been laid down in 
pasture, while 418,473 have become primeval deserts. 



POSTAL EXPRESS. 89 



WHAT WE ARE LOSING — IN MEN. 

While our fields have been thus abandoned to weeds those who tilled them have 
emigrated to lands where their services are valuable. In the last 10 years 1,603,523 
persons have left our shores, whole villages have been deserted as in time of plague, 
and all we get in return for our country is the barren title officina gentium. 

NO LINK BETWEEN GROWER AND BUYER. 

The sterilizing influence, the fatal objection, is the want of some means of getting 
the produce in question quickly and cheaply to the market. A man farming 1,000 
acres contracts with the dealers in town and delivers his produce daily from his own 
van or cart at the nearest railway station. But the tens of thousands who occupy from 
1 to 20 acres own no vans, and in order to secure lower rent they live far away from 
the railways; and the situation of a farm is everything. We can not say of the modern 
British farmer as Horace wrote of the Roman, "Beatus ille qui procul negotiis." 

THE DRUGGIST CALLED IN. 

When dealing with " perishables " produce, as it is called, it is obvious that speed 
of transmission from grower to consumer is the vital factor. No sooner has the apple 
fallen or the egg been laid or the butter been made than predatory bacteria begin to 
pollute it and destroy its pristine and peculiar savor. A certain Scottish angler, an 
epicure, has a fire kindled on the bank of the Tweed and into a pot boiling on that fire 
the first salmon he kills is thrown. Another salmon, caught within the hour and cooked 
in London 24 hours later would have a different and inferior flavor, because the oil 
in the flesh would be slightly rancid. Thompson, the poet, ate peaches growing on 
the tree, just as writers of prose, if bold enough, the oyster alive. Dr. Johnson, who, 
doubtless, in those days of bad roads and slow wagons, spoke feelingly, declared that 
no man was "satisfied with a moderately fresh egg." If we except Chinamen, this 
is true; but very few inhabitants of our towns can secure " new-laid" eggs. As to 
butter, cheese, and milk, it is notorious that our foreign friends thoughtfully save our 
noses from being offended by a liberal use of chemical preservatives, with which 
the British stomach is supposed to deal. One dares not calculate how many kegs of 
Belgian borax and French acid the British middle-class baby must assimilate at the 
most critical period of its existence. 

A DETAILED PLAN. 

It remains to suggest a workable plan for the desired operation of the post office. 
And here it becomes an outsider who is not an official and who knows nothing experi- 
mentally of la petite culture to observe all due modesty. The aim in this article is 
to promote discussion of the subject, and it will, of course, be a subject of congratu- 
lation to the writer if a far better system than his can be brought forward. 

THE PRIME NEED. 

In the first place, the post office should undertake the work of collection. In every 
rural district mapped out there should be local depots, say a mile apart, along the 
roads to which parcels of produce would be brought by a certain hour from the neighbor- 
ing farms and cottages. A postal van hired in the locality would collect from these 
depots and the village post offices and convey the parcels to the nearest railway station. 
The trifling expense of maintaining such a depot might fairly be undertaken by the 
farmers benefited. 

Motor cars should be employed if possible. Let us suppose that a district is 10 
miles from a post office and is inhabited by a hundred cottagers raising then (as all 
would) produce. Clearly the rural postman who now accepts parcels would (even if 
trained by Sandow) be unequal to the task. But the postal van or motor car would 
convey everything to the station in time for the appointed train to the town of destina- 
tion. On reaching that town the parcels would be delivered (if so addressed) to the 



90 



POSTAL EXPRESS. 



depot to be established there or (if so addressed) to individual purchasers. In this 
way eggs, milk, butter, poultry, fruit, and flowers might be placed on our tables within 
four or five hours of the leaving of the farm of origin. 

RATES. 

And now with respect to rates. The writer would recommend 1 penny per pound 
for the cash-on-deliver parcels, with a minimum of 2 pence for anything not over 2 
pounds, and one-half penny per pound with a penny minimum for parcels consigned 
to depots where the postal work is simply collection. These charges should be paid 
in adhesive stamps. 

The maximum weight should be raised to one hundredweight (as in Germany), to 
be ultimately higher still. And here one should entreat the post office to have as few 
charges as possible and to give the "zone" system, so successful on the Continent, at 
least a fair trial. Unfortunately, the post office, as we know, has to pay 50 per cent of 
the postage on railway-borne parcels to the companies. That bargain, however, 
comes to an end next year, and meanwhile the post office would pocket all the postage 
on the parcels sent to the nearest depot by its motor-car service. 

J. Henniker Heaton, M. P. 



Appendix X. 
Express rates by passenger train in England. 
[Consular report.] 



Weight. 


Up to 30 miles. 


30 miles to 50 
miles. 


50 miles to 100 
miles. 


Over 100 miles. 


Pounds. 
2 


d. 
4 
5 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
6 
7 
7 
7 
7 
8 
8 
8 
8 
9 
9 
9 


Cents. 

0. 0811 
.1013 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1216 
.1419 
.1419 
.1419 
.1419 
.1622 
.1622 
.1622 
.1622 
.1824 
.1824 
.1824 


s. d. 
4 
5 
6 
6 
6 
8 
8 
8 
8 
8 
8 
9 
9 
9 
10 
10 
10 
11 
11 

11 

1 
1 
1 
1 1 
1 1 
1 2 
1 2 
1 3 
1 3 
1 4 
1 4 
1 5 
1 5 
1 6 


Cents. 

0. 0811 
.1013 
.1216 
.1216 
.1216 
.1622 
.1622 
.1622 
.1622 
.1622 
.1622 
.1824 
.1824 
.1824 
.2027 
.2027 
.2027 
.2230 
.2230 
.2230 
.2433 
.2433 
.2433 
.2635 
.2635 
.2838 
.2838 
.3040 
.3040 
.3244 
.3244 
.3446 
.3446 
.3649 


s. d. 
4 
5 
6 
7 
8 
9 
10 

11 

1 
1 
1 
1 1 
1 1 
1 2 
1 2 
1 3 
1 3 
1 4 
1 4 
1 5 
1 5 
1 6 
1 6 
1 7 
1 8 
1 9 
1 9 
1 10 

1 11 

2 
2 
2 1 
2 2 
2 3 


Cents. 

0. 0811 
.1013 
.1216 
.1419 
.1622 
.1824 
.2027 
.2230 
.2433 
.2433 
.2433 
.2635 
.2635 
.2838 
.2838 
.3040 
.3040 
.3244 
.3244 
.3446 
.3446 
.3649 
.3649 
.3852 
.4055 
.4257 
.4257 
.4460 
.4663 
.4866 
.4866 
.5068 
.5270 
.5473 


s. d. 
4 
5 
6 
7 
8 
9 
10 

11 

1 
1 
1 1 
1 2 
1 3 
1 4 
1 5 
1 6 
1 7 
1 8 
1 9 
1 10 

1 11 

2 
2 
2 1 
2 2 
2 3 
2 4 
2 5 
2 6 
2 7 
2 8 
2 9 
2 10 
2 11 


Cents. 
0.0811 


3 


.1013 


4 


1216 


5 


.1419 


6 


. 1622 


7 


.1824 


8 


.2027 


9 


.2230 


10 


.2433 


11 


.2433 


12 


.2635 


13 


.2838 


14 


.3040 


15 


.3244 


16 


.3446 


17 


.3649 


18 


.3852 


19 


.4055 


20 


.4257 


21 


.4460 


22 


.4663 


23 


.4866 


24 


.4866 


25 


.5068 


26 


.5270 


27 


.5473 


28 


.5676 


29 


.5879 


30 


.6082 


31 


.6285 


32 


.6488 


33 


.6690 


34 


.6893 


35 


.7096 







POSTAL EXPRESS. 



91 



Farm and dairy produce by passenger train, Great Western Railway, England. 

[Consular report.] 



Weight. 



10 pounds 

24 pounds 

Above 24 pounds * 



Up to 30 
miles. 



d. 

6 



Cents. 

12.16 

12.16 

.25 



31 to 50 
miles. 



Cents. 

12.16 

12.16 

.5 



51 to 100 
miles. 



d. 
6 
9 



Cents. 

12.16 

18.24 

.75 



100 to 200 
miles. 



s. d. 

8 

1 



Cents. 
16.22 
24.33 
1 



Over 200 
miles. 



s. d. 

9 

1 3 



Cents. 

18.24 

30.40 

1.25 



i Minimum charge, 12+ cents. 

The above are special rates of the Great Western Railway for consignments of butter, 
cream, fish, eggs, game, poultry, vegetables, flowers, etc., and include collection 
and delivery. 

Appendix Y. 

Post Office Department, 
Office of the Postmaster General, 

Washington, D. C, May 25, 1911. 
Hon. D. J. Lewis, Rouse of Representatives 

IvIy Dear Sir: In compliance with your request of the 20th instant for information 
with reference to City and Rural Delivery Services, I beg to advise you as follows: 

At the present time there are 1,528 post offices having city delivery. The letter 
carriers in these offices serve a population of approximately 43,000,000. 

The law requires that before city delivery can be established at an office the gross 
postal receipts must amount to $ 10,000 or more, or the population, according to the 
last Federal or State census, must be 10,000 or more. If either of these requirements 
is met, city delivery may, in the discretion of the Postmaster General, be authorized. 
No rule prescribing a minimum population has been made, but at the average office, 
where the receipts are sufficient to permit the establishment of the service, the pop- 
ulation is usually between 3,000 and 4,000, and the employment of two or more car- 
riers is generally necessary. Even where the requirement is met as to receipts, 
however, the service would not ordinarily be established unless the full time of one 
carrier could be utilized. As a precedent to the establishment of the City Delivery 
Service the department also requires the streets to be named, houses numbered, 
sidewalks laid, and adequate street lights provided. 

On May 1, 1911, there were in operation from 17,295 post offices, 41,289 rural routes, 
served by 41,190 rural carriers. Approximately 20,000,000 people are served by these 
carriers. 

Very truly, yours, Frank H. Hitchcock, 

Postmaster General. 



Appendix Z. 



THE SOCIOLOGICAL VIEW. 



[Ward, Dynamic Sociology, vol. 2, p. 578.] 



As remarked in the introduction, the question whether any enterprise should be 
undertaken by the state or left to private individuals is one which must he deter- 
mined on the intrinsic merits of each individual case. The transfer of functions from 
the latter to the former simply marks the expansion of the jurisdiction of the State, 
a process which, when correctly viewed, has been going on steadily from the earliest 
ages of political history. Nearly every present acknowledged function of government 
has once been intrusted to private enterprise. It simply shows that little by little 
society has risen to the consciousness of its needs, and has, one by one, assumed 
control of the more important public interests. Whether it be its finances, its crimi- 
nal jurisprudence, its customs regulation, its postal affairs, its telegraphs, or its rail- 
roads, whatever it fairly perceives to need state administration, it proceeds to assume 
and add to the functions of the government. 



92 POSTAL EXPRESS. 

Now, of all the enterprises which the state has thus appropriated to itself there is 
not one which it has not managed better and more wisely than it had been managed 
before by private parties. Most of them are such that the world has entirely forgotten 
that they were ever private enterprises. Others have become cherished public insti- 
tutions, which no future revolutions can again remand to private direction. And 
there are others which are still debating ground and on trial in some states. The 
transportation question is one of these latter. Telegraph communication is another. 
Education is a third. Other social operations- still, not now looked upon except by 
a few as belonging to this class, are destined to pass through the stages of agitation 
and governmental assumption. These facts should not, however, lead to the conclu- 
sion that government should immediately assume charge of all private enterprises 
which concern the general public. There must be a gradual maturing of the con- 
ditions, both on the side of the state and the individual, before this can successfully 
be done. The question in each case must always be, Is the age ripe for this change? 
As society is constituted, however, premature action of this nature can scarcely occur. 
So strong is the force of established custom that it much more frequently happens 
that the event is too long postponed and the state does not step in until the crying 
evils of private mismanagement and individual incompetency have thoroughly aroused 
it to the necessity. 

The superiority of governmental administration over private management in large 
enterprises of a general private character has been clearly seen and frequently pointed 
out, but the progress of popular opinion on such questions has been powerfully coun- 
teracted by the special nature of the case. Private enterprise is ever jealous of 
governmental encroachment upon its domain, and the more lucrative the enterprise 
is — that is, the greater the need that it be conducted by society in the interest of its 
members — the stronger will be the influence brought to bear against such a result. 
This influence is exerted by the creation of a public sentiment against state inter- 
ference. In this private enterprise always has matters almost entirely its own way. 
The state has little interest in the subject. The people at large rarely attribute 
their burdens to the proper source. Things must reach the point of unendurableness 
before the public will appeal to the state for assistance. Meanwhile a constant 
stream of opposition to all forms of state interference, more or less ingeniously sup- 
ported by plausible argument, is being poured out by interested parties. The result 
is, according to the principle already laid down, that current views which are unop- 
posed will be generally accepted (supra 1 , 422, 433) that the state must overcome an 
immense mass of prejudice before it can act in any case. It is fashionable to declaim 
against the so-called ''bureaucracy" of modern times, but this is only a part of the 
attempt of sagacious capitalists to manufacture public sentiment to counteract the 
steady current of rational conviction toward the conclusion that society must arouse 
to its own interests and take the welfare of its members more directly into its own 
hands. 



Appendix AA. 

A BRIEF SUMMARY OF THE BILLS INTRODUCED IN THE HOUSE RELATING TO PARCEL POST. 

H. R. 2956. Gives post-office monopoly of matter admissible to the mails. 

H. R. 5596. Rural-route parcels, 11-pound limit. 

H. R. 2986. Parcels post, 11-pound limit, rates graded from 12 to 3 cents a pound. 

H. R. 6311. Parcels post, 12-pound limit, 8 cents a pound. 

H. R. 7603. Experimental rural route, 11-pound limit. 

H. R. 8386. Parcels post, 11-pound limit, 12 cents a pound, 5 cents a pound on 
50-mile haul. 

H. R. 4444. Experimental parcels post, packages originating on rural routes; $20,000 
appropriation. 

H. R. 4027. Rural route for parcels, 25-pound limit, 2 cents first pound and 1 cent 
added pound. And general post for farm products to 25-pound limit, 2 cents first 
pound and 1 cent each additional pound. 

H. R. 1341. Experimental rural route, confined to four counties. 

H. R. 16. Urban delivery in towns of not less than 1,000 population. 

H. R. 14. Parcels post, limit 11 pounds, 8 cents a pound; provisions for insurance 
of packages; rural-route rates given. 



POSTAL EXPKESS. 



93 



Appendix AB. 

Table of actual freight rates per 100 pounds, in first and sixth classes, on nine 
different routes, for distances to 1,156 miles. 



Routings. 


Dis- 
tance 
in 

miles. 


Classes. 


Railway system. 


Shipped from — 


Shipped to — 


First. 


Sixth. 


Boston, Mass 


Taunton, Mass 

Oscawanna, N. Y 

New Galilee, Pa 

Elgin, 111 


36 

36 
36 
36 
36 
36 
36 
36 
36 


Cents. 
16 
17 
9.5 
21.1 
21.1 
17.9 
32 
29 
21.12 


Cents. 

7 

6 

6 

8 

8 

7 
16 
14 

9 


(o) N. Y., N. H. & H. 


New York, N. Y 


(o) N. Y. C. & H. 


Pittsburgh, Pa 


(o) Pa. Co. 


Chicago, 111 


(i) C, M. & St. P. 


Do 


Coleman, 111 


(i) 111. C. 


St. Paul, Minn 


Eggleston, Minn 

Elizabethtown, Ky . . . 
Oliver Springs, Tenn.. 
Bunker Hill, 111 


(w) C. f M. & St. P. 


Louisville, Ky 


(s) L. & N. A. 


Knoxville, Tenn 


(s). 


St. Louis, Mo 


(i) Big 4. 






Average charge, 36 miles. 




20.5 


9 




Middletown, R.I 

New Hamburgh, N. Y. 

Leetonia, Ohio 

Kingston, 111 






Boston, Mass 


64 
64 
64 
64 
64 
64 
64 
64 
64 


20 

20 

15.5 

24.8 

24.1 

24.7 

20 

40 

26.6 


7 

7 

6.5 

9.5 

9 

10 
11 
15 
10 


(o) N. Y., N. H. & H. 


New York, N. Y 


(o) N. Y. C. & H. 


Pittsburgh, Pa 


(o) Pa. Co. 


Chicago, 111 


(i) C, M. & St. P. 


Do 


Kankakee, 111 


(i) 111. C. 


St. Paul, Minn 


Wabasha, Minn 

Frankfort, Ky 

Jellico, Tenn 


(w) C, M. & St. P. 


Louisville, Ky 


(s). 


Knoxville, Tenn 


(s). 


St. Louis, Mo 


Litchfield, 111 


(i) Big 4. 








Average charge, 64 miles. 




24.0 


9.4 




North Eastham, Mass. 
Tivoli, N. Y 






Boston, Mass 


100 
100 
100 
100 
100 
100 
100 
100 
100 


22 

23 

24.5 

30.8 

31.6 

30.6 

28 

50 

30.9 


11 
8 
8 
12 
12 
12 
10 
22 
11 


(o)N. Y.,N. H. &H. 


New York, N. Y 


(o) N. Y. C. & H. 


Pittsburgh, Pa 


Canton, Ohio 


(o) Pa. Co. 


Chicago, 111 


Forreston, 111 


(i)C, M. & St. P. 


Do 


Paxton, 111 


(i) 111. C. 

(w) C, M. & St. P. 


St. Paul, Minn 


Minnesota City, Minn. 

Lexington, Ky 

Johnson City, Tenn . . . 
Pana, 111 


Louisville, Ky 


(s). 


Knoxville, Tenn 


(s). 


St. Louis, Mo 


(i) Big 4. 






Average charge, 100 miles 




•30.2 


12 




Water bury, Conn 

Albany, N. Y 






Boston, Mass 


144 
144 
144 
144 
144 
144 
144 
144 
144 


29 

26 

26 

35.3 

36.1 

37.5 

55 

69 

35 


14 

9 

8.5 
13 
14 
15 
30 
31 
13 


(o) N. Y., N. H. & H. 


New York, N. Y 


(o) N. Y. C. & H. 


Pittsburgh, Pa 


Custaloga, Ohio 

Savanna, Bl 


(o) Pa. Co. 


Chicago, 111 


(i) C, M. & St. P. 


Do 


Tuscola, Bl 


(i) Bl. C. 

(w) C, M. & St. P. 


St. Paul, Minn 


Portland, Tenn 

Mountain City, Tenn. . 
Charleston, 111 


Louisville, Ky 


(s) L. & N. 


Knoxville, Tenn 


(s). 


St. Louis, Mo 


(i) Big 4. 






Average charge, 144 miles 




38.8 


16.3 






New York, N. Y 
Fonda, N. Y 






Boston, Mass 


196 
196 
196 
196 
196 
196 
196 
196 
196 


32 

30 

32 

50 

39.1 

57 

38 

78 

32.5 


15 
10 

9.5 
16 
15.5 
23 
15 
34 

9 


(o) N. Y., N. H. & H. 


New York, N. Y 


(o) N. Y. C. & H. 


Pittsburgh, Pa 


Crestline, Ohio 

Kilbourn. Wis 

Effingham, 111 

Milbank, S. Dak 

Terre Haute, Ind 


(o) Pa. Co. 


Chicago, 111 


(w) C, M. & St. P. 


Do 


(i) 111. C. 


St. Paul, Minn 


(w) C, M. & St. P. 


Louisville, Ky 


(s). 


Knoxville, Tenn 


(s). 


St. Louis, Mo 


(o)Big4. 






Average charge, 196 miles 




43.1 


16.3 






Campbell Hall, N. Y.. 
Rome, N. Y 






Boston, Mass 


256 
256 
256 
256 
256 
256 
256 
256 
256 


35 

34 

38.5 

50 

42.3 

70 

69 

76 

38 


15 
12 
11 
17 
16 
28 
25 
30 
10.5 


(o) N. Y., N. H. & H. 


New York N. Y 


(o) N. Y. C. & H. 


Pittsburgh, Pa 


Lima, Ohio 


(o) Pa. Co. 

(w) C, M. & St P. 


Chicago, 111 


Sparta, Wis 


Do 


Centralia, Bl 


(i) 111. C. 

(w) C, M. & St P. 


St. Paul, Minn 


Bristol, S. Dak 

Paris, Tenn 


Louisville, Ky 


(s). 


PTnoTvillp., Term . . 


Louisville, Ky 

Indianapolis, Ind 


(s). 


St. Louis, Mo 


(o) Big 4. 






Average charge, 256 miles 




50 


18.2 













94 



POSTAL EXPRESS. 



Table of actual freight rates per 100 pounds, in first and sixth classes, on nine 
different routes, for distances to 1,156 miles — Continued. 



Routings. 


Dis- 
tance 

in 
miles. 


Classes. 




Shipped from — 


Shipped to — 


First. 


Sixth. 


Railway system. 


Boston, Mass 


Roscoe, N. Y 


324 
324 
324 
324 
324 
324 
324 
324 
324 


Cents. 
38 
35 
41 
50 
45.9 
83 
96 
73 
41 


Cents. 
15 
13 
12 
18 
18 
35 
41 
31 
12 


(0) N. Y., N. H. & H. 

(0) N. Y. C. & H. 

(0) Pa. Co. 

(w) C, M. & St. P. 

(i) 111. C. 

(w) C, M. & St. P. 

(s). 

(s). 

(0) Big 4. 


New York,N. Y 


Lyons, N. Y 


Pittsburg, Pa 


Fort Wayne, Ind 

Minnesota City, Minn. 
Cobden, 111 


Chicago, 111 


Do 


St. Paul, Minn 


Ipswich, Minn 

Cleveland, Tenn 

Augusta, Ga 


Louisville, Ky 


Knoxville, Tenn 


St. Louis, Mo 


Muncie, Ind 






Average charge,324 miles. 




56 


21.7 




Akron, N. Y 






Boston, Mass 


400 
400 
400 
400 
400 
400 
400 
400 
400 


38 
39 
44.5 
60 
50 
105 
98 
84 
46 


15 

13 

14.5 

20 

20 

45 

39 

32 

15 


(0) N. Y., N. H. & H. 

(0) N. Y. C. & H. 

(0) Pa. Co. 

(w) C, M. & St. P. 

(s). 

(w) C, M. & St. P. 

(s). 

(s). 

(0) Big 4. 


New York, N. Y 


Pittsburgh, Pa 


Hamlet , Ind 


Chicago, 111 


St. Paul, Minn 

Paducah, Ky 


Do 


St. Paul, Minn 


Mobridge, S. Dak 

Holly Springs, Tenn.. 

Memphis, Tenn 

Bellefontaine, Ohio 


Louisville, Ky 


Knoxville, Tenn 


St. Louis, Mo 




Average charge, 400 miles. 




62.7 


23.7 






West Monroe, N. Y. .. 

Westfield, N. Y 

Chicago, 111 






Boston, Mass 


484 
484 
484 
484 


40 
45 
45 
80 


15 
15 
15 

27 


(0) N. Y., N. H. & H. 


New York,N. Y 


(0) N. Y. C. & H. 
(0) Pa. Co. 
(w)C.,M. &St. P. 


Pittsburgh, Pa 


Chicago, 111 


Liberty, Mo 


Do 




St. Paul, Minn 


Morristown, S. Dak . . 

Montgomery, Ala 

Jesup, Ga 


484 
484 
484 
484 


114 

98 
106 

52.5 


47.5 
41 
48 
16 


(w) C, M. & St. P. 


Louisville, Ky 


(s). 


Knoxville, Tenn 


(s). 

(0) Big 4. 


St. Louis, Mo 


Shelby, Ohio 






Average charge,484 miles . 




72.5 


28 




Depew, N. Y 






Boston, Mass 


576 
576 
576 
576 
576 
576 
576 
576 
576 


44 

50 

56 

85 

85 
133 
103 
114 

55.5 


15 
17 
18 

135 
31 

155 
43 
44 
17 


(0) N. Y., N. H. & H. 
(0) N. Y. C. & H. 


New York, N. Y 


Perry, Ohio 


Pittsburgh, Pa 


St. Louis, Mo 


(0) Pa. Co. 

(w) C, B. & Q. 

(s). 

(w) C, M. & St. P. 


Chicago, 111 


Memphis, Tenn 

Griffin, N. Dak 

Macon, Ga 


Do 


St. Paul, Minn 


Louisville, Ky 


(s). 


Knoxville, Tenn 


St. Louis, Mo 


(s). 

(0) Big 4. 


St. Louis, Mo 








Average charge,576 miles . 




80.5 


30.5 






Erie, Pa 






Boston, Mass 


676 
676 
676 
676 
676 
676 
676 
676 


50 

59 

69 
144 
157 

90 
100 

56.5 


17 

20 

23.5 
162 
179 

35 

40 

18.5 


(0) N. Y. C. & H. 


New York, N. Y 


Sandusky, Ohio 

Rock Island, 111 

Holdredge, Nebr 

Terry, Mont 


(0) N. Y. C. & H. 


Pittsburgh, Pa 


(0) P. & L. E. 


Chicago, 111 


(w) O, B. & Q. 


St. Paul, Minn 


(w) C, M. & St. P. 


Louisville, Ky ...; 


Mobile, Ala 


(s). 


Knoxville, Tenn 


Philadelphia, Pa 

Westfield, N.Y 


(s). 


St. Louis, Mo 


(0) Big 4. 






Average charge,676 miles . 




90.6 


36.9 






Toledo, Ohio 






Boston, Mass 


784 
784 
784 
784 
784 
784 
784 
784 
784 


59 
68 
95 

157 

118 , 
180 

90 
100 

66.5 


20 
23 
29 

167 
49 

190 
35 
40 
22 


(0) N. Y. C. & H. 


New York, N. Y 


Edgarton, Ohio 

St. Paul, Minn 

Culbertson, Nebr 

Jackson, Miss 


(0) N. Y. C. & H. 


Pittsburgh, Pa 


(0) P. & L. E. 


Chicago, 111 


(w) C, B. & Q. 


Do 


(s). 


St. Paul, Minn 


Heritage , Mont 

New Orleans, La 

Rochester, N. Y 

Bergen, N. Y 


(w) O, M. & St. P. 


Louisville, Ky 


(s). 


Knoxville, Tenn 


(s). 


St. Louis, Mo 


(0) Big 4. 






Average charge, 784 miles. 




103.7 


41.7 






Sturgis, Mich 






Boston, Mass . . 


900 
900 


72 
72 


24 
24 


(0) N. Y., C. & H. 


New York, N. Y 


La Porte, Ind 


(0) N. Y., C. & H- 









POSTAL EXPRESS. 



95 



Table of actual freight rates per 100 pounds, in first and sixth classes, on nine 
different routes, for distances to 1,156 miles — Continued. 



Routings. 



Shipped from— 



Shipped to — 



Dis- 
tance 

in 
miles. 



Classes. 



First. 



Sixth. 



Railway system. 



Chicago, 111 

Do 

St. Paul, Minn 

Louisville, Ky 

Knoxville, Tenn 

St. Louis, Mo 

Average charge,900 mjles 

Boston, Mass 

New York, N.Y 

Pittsburgh, Pa.... 

Chicago, 111 

Do 

St. Paul, Minn 

Louisville, Ky 

Knoxville, Tenn 

St. Louis, Mo 

Average charge, 1,024 
miles. 

Boston, Mass 

New York, N.Y 

Pittsburgh, Pa 

Chicago, 111 

Do 

St. Paul, Minn 

Louisville, Ky 

Knoxville, Tenn 

St. Louis, Mo 

Average charge, 1,156 
miles. 



Akron, Colo 

New Orleans, La 

Ryegate, Mont 

North Adams, Mass. 

Utica, N. Y 

Canastota, N. Y. . . . 



900 
900 
900 
900 
900 
900 



Cents. 
180 
110 
202 

82 
100 

79.5 



Cents. 
167 

41 
U01 

27 

40 

26 



110.2 



42.1 



Elkhart, Ind 

Mattoon, 111 

Tulsa, Okla 

Denver, Colo 

Pan Handle, Tex. 
Lombard, Mont.. 

Boston, Mass 

Portland, Me 

Albany, N.Y... . 



1,024 
1,024 
1,024 
1,024 
1,024 
1,024 
1,024 
1,024 
1,024 



72 

83 
170 
180 
176 
225 

82 
100 

84 



24 
28 

174 
67 

192 

1113 

27 

40 

28 



129.7 



54.7 



Geneva, 111 

St. Louis, Mo 

Oklahoma City, Okla 

Pueblo, Colo 

Bovina, Tex 

Deer Lodge, Mont 

Portland, Me 

Montreal, Quebec 

Springfield, Mass 



1,156 
1,156 
1,156 
1,156 
1,156 
1,156 
1,156 
1,156 
1,156 



78 

88 
180 
180 
189 
225 

82 
116 

94. 



26 

29 

182 

167 

199 

1113 

27 

46 

31 



(w) C, B. & Q. 

(s). 

(w)C.,M. &St. P. 

(o) Big 4. 

(s). 

(o) Big 4. 



(o) N. Y., C. & H. 

(o)N. Y.,C. &H. 

(w). 

(w). 

(w). 

(w)C.,M. &St. P. 

(s). 

(s). 

(o) Big 4. 



(o) N. Y., C. & H. 

(o) N. Y., C. & H. 

(w). 

(w). 

(w). 

(w) C, M. & St. P. 

(s). 

(s). 

(o) Big 4. 



136.9 



57.7 



i Fifth-class rates. 

The Classification territory is indicated by initials preceding the name of the railway system used — "o" 
for Official, " w" for Western, "i" for Illinois, and "s" for Southern. 



Appendix AC. 



Post Office Department, 
Second Assistant Postmaster General, 

Washington, December 12, 1911. 

Hon. David J. Lewis, 

House of Representatives. 
My Dear Sir: In reply to your letter of the 9th instant, requesting further 
information with reference to postal-car pay, I have to advise that the gross 
pay of $44,798,838.95 does not include pay for car space. The amount paid for 
car space during the year ended June 30, 1908, was $4,567,366.25. 

Relative to your second inquiry, as to what ratio the car-space pay should 
be assigned to the low-pay class — i. e., " over 48,000 pounds " — I have to in- 
form you that I am unable to state what that ratio was for the year 190S, 
but I have made a tabulation of the conditions existing on December 1, 1911, 
and find that 54.12 per cent of the railway post office car pay in effect on that 
date is for service on the routes carrying over 48,000 pounds, the amount being 
$2,503,502.64 out of a total of $4,623,361.62. 
I trust this will give you the information you desire. 
Yours, very truly, 

Joseph Stewart, 
Second Assistant Postmaster General. 



96 



POSTAL EXPRESS. 



Appendix AD. 

Statement No. 8. — Comparison of " graduated charges " for packages weighing 
less than 100 pounds, as fixed by " official express classification No. 20 " and 
by the Midland Railway of England, where the rates per 100 pounds are the 
same; " carrier's risk " in England; also the " owner's risk " scale of the 
Midland Railway, covermg samples and certain specified articles of merchan- 
dise, some of which are classified as " general specials " in the United States. 

Note. — The English "carrier's risk" scale covers "collection and delivery within the usual limits;" the 
"owner's risk" scale in some cases provides for "collection and delivery," but in many instances limits 
the service to either "collection" or "delivery" and on a few commodities covers only a "station-to-station" 
service. 



Weight. 



Tariff rate per 100 pounds (cents). 



25 



Eng- 
lish 
owner's 
risk. 



50 



United 
States. 



English. 



Car- 
rier's 
risk. 



Own- 
er's 
risk. 



75 



United 
States. 



Eng- 
lish 
owner's 
risk. 



100 



United 
States. 



English. 



Car- 
rier's 
risk. 



Own- 
er's 
risk. 



1 pound 

2 pounds . . . 

3 pounds . . . 

4 pounds . . . 

5 pounds . . . 

6 pounds... 

7 pounds... 

8 pounds... 

9 pounds... 

10 pounds . . 

11 pounds.. 

12 pounds . . 

13 pounds. . 

14 pounds.. 

15 pounds.. 

16 pounds . . 
17 pounds. . 

18 pounds . . 

19 pounds . . 

20 pounds . . 

21 pounds . . 

22 pounds . . 

23 pounds . . 

24 pounds. . 

25 pounds. . 
26 pounds. . 

27 pounds . . 

28 pounds . . 

29 pounds . . 

30 pounds . . 

31 pounds. . 

32 pounds . . 

33 pounds.. 

34 pounds.. 

35 pounds.. 

36 pounds . . 

37 pounds.. 

38 pounds.. 

39 pounds.. 

40 pounds.. 

41 pounds.. 

42 pounds.. 

43 pounds.. 

44 pounds.. 

45 pounds.. 

46 pounds.. 

47 pounds . . 

48 pounds.. 

49 pounds . . 

50 pounds . . 

51 pounds.. 

52 pounds.. 

53 pounds . . 

54 pounds.. 

55 pounds . . 

56 pounds . . 
60 pounds . . 
70 pounds . 
80 pounds.. 
90 pounds . . 
100 pounds. 



10 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
14 
14 
14 
14 
14 
14 
14 
14 



C 1 ) 
( l ) 
(') 

0) 
C 1 ) 



25 

25 
25 
25 
25 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
35 
35 
35 
35 
35 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
45 
45 
45 
45 
45 
50 
50 
50 
50 
50 
50 
50 
50 
50 
50 
50 



C 1 ) 

C 1 ) 

( l ) 

( l ) 

(!) 
( x ) 

0) 
0) 
C 1 ) 
C 1 ) 
0) 
0) 
C 1 ) 
C 1 ) 

( L ) 

C 1 ) 
C 1 ) 
C 1 ) 
C 1 ) 
G) 
0) 

( x ) 
( J ) 
0) 

0) 
( l ) 
O) 
0) 
C 1 ) 
0) 
0) 
C 1 ) 
C 1 ) 
0) 
C 1 ) 
C 1 ) 
C 1 ) 



10 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
12 
14 
14 
14 
14 
16 
16 
16 
16 
18 
18 
18 
18 
20 
20 
20 
20 
22 
22 
22 
22 
24 
24 
24 
24 
26 
26 
26 
26 
28 
28 
28 
28 
( l ) 

0) 
0) 

0) 
C 1 ) 



25 
30 
30 
30 
35 
35 
35 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
40 
45 
45 
45 
45 
45 
50 
50 
50 
50 
50 
50 
50 
50 
50 
50 
55 
55 
55 
55 
55 
60 
60 
60 
60 
60 
60 
60 
60 
60 
60 
65 
65 
65 
65 
65 
70 
70 
75 
75 
75 
75 



10 
12 
12 
12 
12 
12 
12 
12 
12 
12 
14 
14 
14 
14 
16 
16 
16 
16 
18 
18 
18 
18 
20 
20 
22 
22 
22 
24 
24 
24 
26 
26 
28 
28 
28 
30 
30 
30 
32 
32 
34 
34 
34 
36 
36 
36 
38 
38 
40 
40 
40 
42 
42 
42 



0) 
C 1 ) 
0) 
C 1 ) 
C 1 ) 



25 
30 
30 
35 
40 
40 
40 
45 
45 
45 
45 
45 
45 
45 
45 
50 
50 
50 
50 
50 
55 
55 
55 
55 
55 
60 
60 
60 
60 
60 
65 
65 
65 
65 
65 
70 
70 
70 
70 
70 
75 
75 
75 
75 
75 
80 
80 
80 
80 
80 
85 
85 
85 
85 
85 
90 
90 
100 
100 
100 
100 



10 
12 
12 
12 
16 
16 
16 
16 
16 
16 
18 
18 
18 
20 
20 
20 
22 
22 
22 
24 
24 
24 



( l ) 
C 1 ) 
0) 

( x ) 

<*) 

C 1 ) 

C 1 ) 

0) 

C 1 ) 
C 1 ) 
C 1 ) 

(!) 

C 1 ) 
C 1 ) 
C 1 ) 
0) 
C 1 ) 
0) 

( l ) 

0) 

( l ) 

0) 
0) 
C 1 ) 
C 1 ) 
0) 
C 1 ) 
O) 
C 1 ) 
C 1 ) 

0) 

C 1 ) 
O) 
C 1 ) 

( l ) 

( l ) 

0) 



8 
8 
10 
12 
12 
12 
12 
14 
14 
16 
18 
18 
20 
20 
20 
20 
22 
22 
22 
22 
24 
24 
24 
24 
26 
26 
28 
28 
30 
30 
32 
32 
34 
34 
36 
36 
38 
38 
40 
40 
42 
42 
44 
44 
46 
46 
48 
48 
50 
50 
52 
52 
54 
54 
56 
56 



1 Pound rates. 



POSTAL EXPRESS. 



97 



Statement No. 8. 



-Comparison of "graduated charges " for packages weighing 
less than 100 pounds, etc. — Continued. 



Weight. 



1 pound. . . . 

2 pounds.. 

3 pounds . . 

4 pounds . . 

5 pounds . . 

6 pounds.. 

7 pounds . . 

8 pounds.. 

9 pounds . . 

10 pounds . 

11 pounds. 
i 2 pounds. 

13 pounds. 

14 pounds. 

15 pounds. 

16 pounds. 

17 pounds. 

18 pounds . 

19 pounds. 

20 pounds . 

21 pounds. 

22 pounds. 

23 pounds . 

24 pounds. 

25 pounds. 

26 pounds. 

27 pounds. 

28 pounds. 

29 pounds . 

30 pounds . 

31 pounds . 

32 pounds. 

33 pounds . 

34 pounds. 

35 pounds. 

36 pounds. 

37 pounds. 

38 pounds. 

39 pounds. 

40 pounds . 

41 pounds. 

42 pounds . 

43 pounds. 

44 pounds . 

45 pounds. 

46 pounds. 

47 pounds. 

48 pounds . 

49 pounds. 

50 pounds. 

51 pounds . 

52 pounds . 

53 pounds . 

54 pounds. 

55 pounds. 

56 pounds . 
CO pounds. 
70 pounds. 
80 pounds . 
90 pounds . 
100 pounds 



Tariff rate per 100 pounds (cents). 



125 


150 


200 


250 












English car- 




Eng- 


United 


Eng- 
lish 


United 


Eng- 
lish 


United 


rier's 


risk. 


United 


lish 
ear- 








States. 


owner's 
risk. 


States. 


rier's 


States. 


Except 


To 


States. 


ner s 
risk 






risk. 




to Scot- 


Scot- 




to Scot- 












land. 


land. 




land. 


25 


8 


25 


8 


25 


8 


8 


25 


8 


30 


8 


30 


8 


35 


8 


8 


35 


8 


35 


10 


35 


10 


45 


10 


10 


45 


10 


35 


12 


40 


12 


50 


12 


12 


55 


12 


40 


12 


45 


14 


55 


14 


14 


60 


14 


45 


12 


50 


16 


60 


16 


16 


70 


16 


45 


12 


50 


18 


60 


18 


18 


70 


18 


50 


16 


55 


20 


70 


20 


20 


75 


20 


50 


16 


55 


22 


70 


22 


22 


75 


22 


50 


18 


55 


24 


70 


24 


24 


75 


24 


55 


20 


60 


24 


75 


24 


24 


85 


24 


55 


20 


60 


24 


75 


26 


28 


85 


28 


55 


22 


60 


26 


75 


28 


32 


85 


32 


55 


22 


60 


26 


75 


30 


36 


85 


36 


55 


24 


60 


28 


75 


32 


38 


85 


40 


60 


24 


70 


28 


85 


34 


40 


100 


44 


6a 


24 


70 


30 


85 


36 


42 


100 


48 


60 


26 


70 


30 


85 


38 


42 


100 


50 


60 


26 


70 


32 


85 


40 


44 


100 


52 


60 


28 


70 


32 


85 


42 


44 


100 


54 


65 


28 


75 


34 


100 


44 


46 


no 


56 


65 


30 


75 


34 


100 


46 


46 


no 


58 


65 


30 


75 


36 


100 


48 


48 


no 


58 


65 


30 


75 


36 


100 


48 


48 


110 


60 


65 


32 


75 


0) 


100 






0) 


110 





1 


70 


34 


80 


0) 


100 






C 1 ) 


115 





) 


70 


34 


80 


0) 


100 






O) 


115 


C 1 


1 


70 


36 


80 


0) 


100 






C 1 ) 


115 





1 


70 


38 


80 


0) 


100 






0) 


115 


( l 


) 


70 


38 


80 





100 






0) 


115 







75 


40 


85 


0) 


100 




t 


0) 


125 


( l 




75 


40 


85 


0) 


100 






C 1 ) 


125 


< l 




75 


42 


85 


0) 


100 






0) 


125 







75 


44 


85 


0) 


100 






0) 


125 







75 


44 


85 


0) 


100 


( 




0) 


125 





) 


80 


46 


90 


0) 


100 


C 1 




C 1 ) 


125 





1 


80 


48 


90 


0) 


100 






0) 


125 





1 


80 


48 


90 


0) 


100 






0) 


125 


(* 


> 


80 


50 


90 


0) 


100 


(1 




0) 


125 





) 


80 


50 


90 


0) 


100 






0) 


125 


( l 


1 


90 


52 


100 


0) 


100 






( x ) 


125 


( l 


1 


90 


54 


100 


100 


h 




C 1 ) 


125 


( l 


1 


90 


54 


100 


0) 


100 


(i 




0) 


125 


( l 




90 


56 


100 


0) 


100 






I 1 ) 


125 


(1 


1 


90 


58 


100 


0) 


100 






C 1 ) 


125 


(1 


1 


100 


58 


100 


m 


100 


(l 


) 


( x ) 


125 


(1 


1 


100 


60 


100 


W 


100 


(l 


( l ) 


125 


( l 


1 


100 


60 


100 


\ 1 } 


100 






0) 


125 


( l 




100 


62 


100 


$ 


100 






0) 


125 


( l 




100 


64 


100 


ffl 


100 






C 1 ) 


125 


( l 




100 


64 


102 


0) 


C 1 ) 






0) 


0) 


( l 




100 


66 


104 


C 1 ) 


(iS 






L l S 


■ ( l 


> 




100 


68 


106 


h 


(1) 


(i 


I 


0) 


0). 


( l 




100 


68 


108 


0) 


0) 


(i 




0) 


0) 







100 


70 


110 


0) 


C 1 ) 


(l 




0) 


0) 







110 


70 


112 


0) 


0) 


(i 




( l ) 


( l ) 







110 


(J) 


120 


0) 


0) 


(r 




(') 


0) 


( l 




125 


0) 


140 


0) 


(1) 


(r 




0) 


0) 







125 


y} 


150 


0) 


w 




M 


C 1 ) 


( l 




125 


(>) 


150 


0) 


0) 


ii 




0) 


0) 


b 




125 


M 


150 


(») 


0) 


(V 




0) 


0) 


( l J 






i 


Pound r 


ales. 

















S. Doc. 379, 62-2- 



o 



lBJe'12 



